Chip Giant Marvel Announces Price Increase Due to AI Demand Frenzy

Due to the surge in demand for artificial intelligence, American network and optical communication chip giant Marvel recently issued a notice announcing that their entire product line will increase prices starting from January 1, 2025, taking the lead in the wave of price increases in the optical communication field.
Marvel has benefited from the high demand for AI related to cloud data centers such as ASIC (Special Application IC) and silicon optics. Its financial report and forecast exceeded market expectations last quarter. And this price increase also means that the company’s performance may continue to grow.

Dean Jarnac, Senior Vice President of Global Sales at Marvel, mentioned in the price increase notice letter that in response to the surge in global demand for accelerated computing and AI, the company will continue to innovate and increase investment to provide customers with cutting-edge products and technologies.
Dean Jarnac stated that in response to the increase in investment amount, Marvel will raise prices for all products and minimize the price increase as much as possible to reduce the impact on customers. He also reminded customers to place orders according to delivery dates and provide accurate demand forecasts.
Marvel’s financial report and forecast for the previous quarter were mainly driven by the high demand for AI. And that has led to strong growth in its data center business.
Among them, optical communication products such as 800G PAM and 400ZR Data Center Interconnect (DCI) have become important growth engines, driving an annual increase of over 90% in data center revenue.