Published on : Aug 06, 2015
Marvell Technology Co. has plans of selling its business of wireless chips. Such a step has got many Chinese firms interested. Shanghai Pudong Science and Technology Investment Co. and Leadcore Technology Co. are weighing out the offers that have been put forth for this unit, and Marvell has valued it at US$1 billion. One of the business propositions suggests that Marvell would be pooling the wireless operation that it owns, in the form of a joint venture, which would involve a China based buyer acquiring a majority share.
The total amount that Chinese firms ended up spending had exceeded US$6 billion mainly on acquiring semiconductor business right since 2013 in the U.S. Sources have also revealed that even the government had taken steps to create a supply chain of locally manufactured chips. This wireless unit of Marvell that designs mobile phone chips and also for connected devices used in homes has been struggling for quite some time now with Taiwan based MediaTek winning chips’ orders for mid-range phones being sold in China.
In the past couple of weeks, the shares of Marvell went up by almost 5% and thus driving the market to reach a value of US$6.7 billion. The company however hasn’t come up with the final plan and sources have also stated that these deliberations may not result in the sale.
A representative at Marvell stated that the company in no way intends on giving way to any sort of speculation about taking such as step. A spokesperson at Leadcore also expressed that not very many executives were available to give any more information on this subject.
The chips manufactured by Marvell are mainly incorporated in the mobile phones of Samsung Electronics, smart home goods of Xiaomi Corp, and in the game consoles of Sony Corp.