Chipmaker Marvell Technology Group Ltd. is reportedly weighing the sale of its wireless chip division, according to BloombergBusiness.

The potential sale, Bloomberg sources said, has drawn interest from Chinese firms Leadcore Technology Co. and Shanghai Pudong Science & Technology Investment Co. Marvell is said to value the business at about $1 billion, the sources said.

Representatives from each of the companies were either not available or declined to comment on the matter.

Based in Santa Clara, California with a host of design centers around the globe, Marvell ships over one billion chips each year. According to Bloomberg data, the company’s chips are used variously by Samsung Electronics Co., Sony Corp. and Xiaomi Corp.

In a May earnings call, Marvell chairman and CEO Sehat Sutardja reported a first quarter 2015 revenue of $724 million for a sequential decline of 16 percent. The company’s mobile and wireless revenue declined also declined, dropping 13 percent sequentially.

Sutardja blamed the revenue drop on a weaker than normal demand that was expected to continue into the second quarter but said the company “will continue to invest in new and innovative technologies” to allow Marvell to “emerge stronger when economic situations improves.”

Results for the second quarter have not yet been released.

By: DocMemory
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