Marvell Technology Group Ltd. Will Dissolve Its Communist China R&D Team

According to media sources of Communist China, U.S. Marvell Technology Group Ltd. has recently made another massive layoff and will dissolve its entire R&D team in Communist China.

Marvell’s R&D team in Communist China is reportedly the main part of the company’s layoffs. In October last year, Marvell laid off most of its R&D members in its Shanghai and Chengdu branches, the company stated at the time that the reason was to make business adjustments on a global scale.

According to insider sources, in fact the Communist Chinese market has been a headache for Marvell, the products there involve high-end chips, which are greatly affected by US sanctions. While Marvell’s revenue from there is currently in good shape, the growing list of Communist Chinese companies and entities on the U.S. sanctions list has constrained demand for Marvell’s chips and exacerbated the company’s macroeconomic challenges.

For example, Sales to some Communist Chinese customers require an export license, but some of the applications for this have been rejected by the U.S. government, and Marvell is concerned that these customers may switch suppliers due to the lack of guaranteed sales. As a result, a reduction in some of the R&D team and continued layoffs have become necessary to deal with the trade and political risk.