REFILE-Chipmaker Marvell sees 4G LTE technology fuelling growth

Thu Jun 20, 2013 11:57am EDT

JERUSALEM, June 20 (Reuters) - The surge in high-speed fourth-generation (4G) mobile technology will help propel growth at chipmaker Marvell Technology Group, its co-founder said on Wednesday.

Weili Dai said Marvell's 4G LTE platform is a four-core base application processor on a single chip, designed for any sized screen and also supports 3G technology.

"This is going to be a mover-and-shaker technology," she said in an interview with Reuters at the annual President's Conference in Jerusalem. "I believe next year will be a big year for the big launch of volume for LTE.

"When you develop wireless technology it needs to be globally sound, which means you have to cover North America, Europe, emerging countries and China standards," said Dai, who founded the company with her husband and the company's chief executive, Sehat Sutardja, in 1995.

California-based Marvell has forecast second-quarter revenue above analysts' expectations after first-quarter results topped forecasts on high demand for its storage and networking chips. Among its key customers are hard disk and flash drive makers Western Digital, Seagate Technology and Toshiba Corp.

Its Nasdaq-listed shares closed at $11.24 on Wednesday, up 55 percent so far in 2013. Analysts are bullish on the stock.

"After a long wait, we think Marvell is finally beginning to see some traction in their wireless business, and we don't think this is reflected in Street estimates or in investor sentiment," Susquehanna Financial Group analyst Chris Caso wrote in a client note earlier this week.

Marvell expects its mobile and wireless business to grow double digits sequentially in the second quarter. It also expects double-digit growth in its solid state drivers (SSD) business.

Shanghai-born Dai, one of the few women leaders in the semiconductor industry, sees Marvell's storage business growing due to ever stronger demand for content

"Storage products are in high demand. Whether or not it's a disk drive ... or local storage for the SSD or disk drive combined with the SSD, overall demand is very promising," she said.

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