By Greg Gao

Marvell Technology, a leader in infrastructure semiconductor solutions, posted its financial results for the third quarter of the fiscal year 2023 on December 1. The company expects its revenue from China OEMs to account for less than 10% of its total revenue in the fourth quarter.

In Marvell’s Q3 2023 Earnings Call, Matt Murphy, the company’s President and Chief Executive Officer, said that as the Chinese customers deal with a changing macroeconomic situation, their demand for Marvell’s products has decreased significantly.

 “We estimate that our revenue in the fourth quarter from our OEM customers based in China will decrease to 10% of the total company revenue by over one-third compared to the second quarter,” Matt added.

US chip export curb to China has not meaningfully impacted Marvell’s revenue. While the inventory correction at its customers is challenging in the near term, Matt said it’s prudent to work closely with them to manage the change in an orderly fashion and clear the path to a resumption of growth. 

“In the third quarter of fiscal 2023, we delivered revenue of $1.54 billion, a record for Marvell, growing 27 percent year over year driven by our key growth drivers of cloud, 5G and automotive, as well as share and content gains in our enterprise networking end market,” concluded Matt Murphy.