Marvell US chipmaker has announced some job cuts in China’s R&D sector.
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Marvell Technology Group Ltd (MRVL.O), a US, Santa Clara, California -based manufacturer of microchips, announced on Thursday that it is eliminating some of its research and development positions in China.
Marvell Technology Group Ltd (MRVL.O), a US, Santa Clara, California -based manufacturer of microchips, announced on Thursday that it is eliminating some of its research and development positions in China.
In a written answer to inquiries from Reuters, Marvell’s vice president of corporate marketing Stacey Keegan stated, “In China, we will focus our R&D spending on local clients and the China market.”
“Several of our business divisions and functions are announcing adjustments to their global location strategy as part of this reorganization, which will eliminate roles in China.”
According to iJiwei, an online news portal monitoring the semiconductor industry, Marvell once employed 1,000 workers in China, with roughly 800 of them working in its research and development facility in Shanghai.
Marvell omitted to say how many employees will be impacted by the layoffs.
According to unnamed industry insiders cited by domestic Chinese media outlet iJiwei late on Wednesday, Marvell intended to fire a sizable section of its Chinese R&D team.
Slowing Chip Demand:
The company’s decision is being accompanied by chipmakers’ preparation for a decrease in demand after a surge at the height of a global chip scarcity.
Due to sluggish demand, Samsung Electronics on Thursday reported a 31% decline in profit and predicted that it would remain low until early 2023.
After Samsung, SK Hynix, and Advanced Micro Devices released gloomy estimates for the near future, chip stocks have fallen this month.
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