Lenovo is interested in acquiring chip makers Marvell both sides deny

Lenovo Chairman and CEO Yang Marvell in a financial conference call, in response to rumours yesterday that Lenovo would sell a total or partial bid for the company's $19 per share. Marvell China Team also to the "pretend to be geek" confirmed that this rumor is pure rumor.

Affected by this rumor, Marvell shares rose 3.51% to $15.94 yesterday. Lenovo shares rose 7.27% per cent to HK $10.92 yesterday. It is understood that the current Marvell companies do not have long-term debt, operating net cash flow of 195 million U.S. dollars, the market value of 8.1 billion U.S. dollars, sales gross profit margin of 53.56%, good financial status.

In response to this rumor, the industry in the "pretend to be geeks," said the acquisition of IBM and Moto part of the business, Lenovo Internationalization played a positive role. Compared with other domestic communications manufacturers, Lenovo is currently in the chip almost blank, if the layout of the IC chip field, Lenovo in the future in mobile communications and IoT of the business will play a role in promoting. However, the person at the same time to "pretend to be a geek" said that, for a long time, because of the blockade of key technologies, our enterprises to obtain the capital operation of the U.S. company's key IC technology, there is still a lot of resistance. Previously, Lenovo acquired IBM PC and X86 business, as well as Moto mobile business, does not involve core technology.

With the concept of mobile Internet, smart hardware and IoT, China is becoming an IC consumer superpower. According to IBS FDI, China's IC sales in 2014 will exceed 50% of global sales to $161 billion trillion. 2013 China Semiconductor devices (including IC) has reached 232.2 billion U.S. dollars. With the release of the national Integrated circuit Industry Development Program, the integrated circuit industry has become a national strategy. The National Integrated Circuit Industry Development Fund, established in 2014, has reached 120 billion yuan. It is said that many enterprises are actively applying for the support of the State to develop the chip industry.

As a amorphous semiconductor company, Marvell has an annual output of nearly 1 billion chips, with a diversified portfolio of mobile communications, storage, Internet of Things (IoT), cloud infrastructure, digital entertainment and home content delivery. February 3, Marvell Global Vice President Ding Bin to the Beijing media, in the development of existing business on the basis of 2015 Marvell will promote SSD storage and 3D printing business development. In 3D printing, Ding Bin that the technology will enter the consumer-level market in the next 3 years. Marvell will work with partners to build a sound ecosystem.