Marvell CEO explains how NRE from custom ASIC deals lifts operating margins despite low gross margin
BenBajarin · x · 2026-09-10
Marvell CEO Matt Murphy offered a detailed explanation for why operating margins can rise even when gross margins are low or dragged down in the custom ASIC business: custom deals come with meaningful NRE (non-recurring engineering) revenue, which offsets R&D expense. Investor Ben Bajarin notes this tactic is likely standard across the custom ASIC industry.
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