Semiconductor company Marvell Technology Group (Nasdaq: MRVL) is laying off over 100 employees from its mobile division, which is believed to have hundreds of employees. The reason for the layoffs appears to be the relocation of part or all of the business to China.
If it is decided to move all of the activity to China, it will mean that the mobile division in Israel will shut down, and its hundreds of employees will be laid off. Marvell already operates in China, and the relatively cheap labor there is apparently a catalyst in the decision.
In January 2015, the Chinese C114 website reported rumors that China Electronics Corporation (CEC) was considering the acquisition of Marvell's mobile division, and that the parties had been negotiating for six months. CEC, however, denied that any such negotiations were taking place.
The current round of layoffs is the second major round in the past 15 months, after Marvell laid off 200 employees in Israel in April 2014. The company explained at the time that the step was taken "as part of the company's worldwide strategic deployment efforts aimed at safeguarding the company's business in the long term."
Marvell has two development centers in Israel, in Petah Tikva and Yokne'am, in mobile communications and semiconductors. Among other things, the mobile division is developing a cellular modem and chips for smartphones, as well as 4G cellular (LTE) solutions.
No response was available from Marvell.
Published by Globes [online], Israel business news - www.globes-online.com - on July 5, 2015
© Copyright of Globes Publisher Itonut (1983) Ltd. 2015