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Marvell (MRVL) Joins Forces With Samsung to Develop New 5G SoCs

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Marvell (MRVL - Free Report) recently announced that it has partnered with Samsung Electronics to jointly develop a new System-on-Chip (SoC), which is expected to be available to Tier One operators in the second quarter of 2021.

The new SoC, which will be integrated into Samsung’s Massive MIMO and other advanced radios, will support both 4G and 5G networks, while reducing chipset power consumption by up to 70% more than previous solutions.

The SoC will aid the implementation of new technologies to enhance the capacity and coverage of cellular radios.

Notably, Marvell and Samsung are significantly helping mobile operators roll out 5G with greater speed and efficiency. The two companies have been working jointly for a long time to deliver multiple generations of powerful network solutions.

Last year, the companies had partnered to develop new 5G products, including new radio architectures to meet the demand for high compute power for Massive MIMO deployments.

Increasing Deployments in 5G to Drive Growth

Recently, Marvell announced that it is set to join the Evenstar program, in which it will work with Facebook Connectivity to deliver a 4G/5G OpenRAN Distributed Unit (DU) design for Evenstar. The DU will be based on OCTEON Fusion baseband processors and Arm-based OCTEON multi-core digital processing units (DPUs).

Moreover, last month, Marvell’s OCTEON Fusion baseband processor silicon was adopted by Fujitsu to support the new 5G New Radio (NR) base station offerings.

Notably, Marvell's January-quarter results benefited from solid demand for its storage chips from the 5G infrastructure and data-center end markets. This was a major driver behind the 11.2% year-over-year growth in its revenues.

Markedly, the company expects strong growth in 5G-related revenues in the second half of fiscal 2021, driven by continued deployment in Korea and the beginning of higher 5G adoption in Japan and other countries. This makes us optimistic about the company’s prospects.

Strong Presence in SoC Market Bodes Well

Notably, Marvell specializes in highly integrated SoC and System-in-a-Package (SiP) devices based primarily on ARM designs and sells to both enterprise and consumer customers. It has a significant number of patents in design, software and reference platforms to its credit.

In the High Definition (HD) storage drive market, Broadcom (AVGO - Free Report) is Marvell’s main competitor as these two are the primary SoC suppliers. Also, NXP Semiconductors (NXPI - Free Report) , QUALCOMM (QCOM - Free Report) and Texas Instruments offer various components to the market, making us increasingly cautious about growth prospects of Marvell Technology.

Nonetheless, we believe that given its efforts, Marvell is positioned well to withstand intense competition.

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