迈威尔科技洽购Lumentum 有望达成AI供应链大型并购交易

English version

What happened

Marvell Technology is reportedly in advanced talks to acquire Lumentum, a major optical communications component maker, in what could be a large M&A deal in the AI hardware supply chain.

The economics

A merger is a classic case of horizontal or vertical integration: buying an optical component supplier can bring a key input in-house, reducing reliance on outside suppliers and transaction costs while expanding market share and bargaining power in the AI hardware supply chain. Students can map how the supply chain and market concentration change before and after the deal, and explain why firms expand by acquisition rather than building capacity.

Evaluation

Whether the deal raises efficiency depends on integration costs and regulatory scrutiny, while higher concentration could weaken competition and push up prices downstream; in the short run talks may fail, and long-run gains depend on realised synergies.

Practice question

Using this merger as an example, analyse the benefits and risks of vertical integration through acquisition, and evaluate its effect on competition in the market.