Stefan Mileschin

Apparently, they are happy to see price increases

Marvell Technology customers have broadly been willing to accept price increases in exchange for steady chip supply.

The company's chief executive made the comment on Thursday as it reported better than expected quarterly sales.

CEO Matt Murphy said that customers seem to only care about capacity and if they can be supplied.

Marvell, which makes networking chips used in data centres and vehicles, raised its third quarter sales forecast after reporting stronger than anticipated second quarter sales.

The company expects third quarter sales and adjusted profits of $1.145 billion and 38 cents per share, versus Wall Street estimates of $1.13 billion and 37 cents per share, according to data from FactSet.

Marvell designs chips but relies on others to make them, and those factories are experiencing global shortages stemming from a boom in demand from a wide range of industries.

Marvell said while demand had exceeded supply, it generally has been able to pass many price increases on to its customers, leaving its own margins intact.

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