The CEO of Marvell Technology Inc, Matt Murphy, recently told media that customers were willing to accept price increases in exchange for a stable chip offering after the company reported higher-than-expected quarterly revenue.<\/p>\n\n\n\n
“Ultimately, what they care about is capacity? ‘Can you supply me? If you can’t get me the parts, why would I agree to a price increase?'” Murphy said.<\/p>\n\n\n\n
Marvell, a network chip developer whose customers are mainly data centers and automakers, raised its third-quarter sales forecast after second-quarter sales were stronger than expected.<\/p>\n\n\n\n
The company forecast third-quarter revenue and adjusted profit of $1.145 billion and 38 cents per share, compared with Wall Street estimates of $1.13 billion and 37 cents per share.<\/p>\n\n\n\n
Marvell designs chips but relies on others to manufacture them, and these manufacturers are in the midst of a severe global shortage resulting from a boom in demand from various industries.<\/p>\n\n\n\n
Marvell said that although demand had outstripped supply, it had successfully passed on many price increases to customers, thereby securing its own margins.<\/p>\n\n\n