SAN FRANCISCO – Chipmaker Marvell Technology is acquiring rival Cavium for US$6 billion. The deal comes amid rapid consolidation in the semiconductor industry and is expected to see Marvell expanding beyond production of chips for storage devices.

Shares of Cavium jumped eight percent in early trading, while shares of Marvell rose three percent.

The combined company will have $3.4 billion in annual revenue.

“This is an exciting combination of two very complementary companies that together equal more than the sum of their parts,” said Marvell CEO Matt Murphy.