Semiconductors

US Chipmaker Marvell Chops Research Staff in China

 

US microchip designer Marvell Technology Group said on Thursday it is cutting some of its research and development staff roles in China.

“In China, we will focus our R&D investments on local customers and the China market,” Stacey Keegan, vice president of corporate marketing at Marvell, said.

“As a part of this realignment, several of our business units and functions are announcing changes to their global location strategy that will result in the elimination of roles in China.”

Marvell joins a number of US-based companies have scaled back their R&D operations in China, after Washington enacted tough sanctions on the Chinese chip sector early this month.

 

Also on AF: Chinese Cities Crack Down on Covid as Outbreaks Grow

 

Marvell at one point had 1,000 people working in China, about 800 of whom were located at its research and development centre in Shanghai, according to iJiwei, an online news site tracking the semiconductor sector.

Marvell did not specify how many staffers would be affected by the cuts.

 

Chip Demand Slowing

The company’s move comes as chipmakers brace for slowing demand following a boom at the peak of a global chip shortage.

Samsung Electronics on Thursday reported a 31% drop in profit due to weak demand, and forecast it would stay low until early 2023.

Chip stocks have taken a hit this month after Samsung, SK Hynix and Advanced Micro Devices announced dour forecasts for the near future.

 

  • Reuters, with additional editing from Alfie Habershon

 

 

 

Read more:

 

Chipmaker SK Hynix to Slash Investment as Recession Looms

 

China’s YMTC Asks US Staff to Leave After US Chip Curbs – FT

 

Toyota Set to Cut Production Target Over Chips Shortage

 

 

 

Alfie Habershon

Alfie is a Reporter at Asia Financial. He previously lived in Mumbai reporting on India's economy and healthcare for data journalism initiative IndiaSpend, as well as having worked for London based Tortoise Media.

Recent Posts

Investors Suspect Beijing Behind Controlled Yuan Decline

The currencies of China's trading partners have weakened faster than the yuan recently, eroding the…

16 hours ago

Shimao Bondholders Group to Vote Against Debt Revamp Plan

The creditors’ opposition to the proposal could be a major problem for the ailing property…

18 hours ago

China’s Country Garden ‘Hires Kroll For Liquidation Assessment’

Sources say China's biggest developer, which went into default in October with debts of $190…

21 hours ago

Xi to Visiting Dutch PM: No One Can Stop China’s Tech Progress

The Chinese president also warned his Dutch counterpart against restricting chip ties with Beijing, amid…

21 hours ago

Alibaba Ditches Cainiao IPO, Offers to Buy Remaining Shares

The e-commerce giant has abandoned plans to list its cross-border logistics unit and is offering…

22 hours ago

China ‘Closing Gap’ on US in Quantum Technology Race – SCMP

China leads the world in the number of patents filed for quantum computing technology but…

22 hours ago