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					                                                                             MORGAN            STANLEY              RESEARCH
                                                                             NORTH          AMERICA


                                                                             Morgan Stanley & Co. LLC            Sanjay Devgan
                                                                                                                 Sanjay.Devgan@morganstanley.com
                                                                                                                 +1 415 576 2382

                                                                                                                 Joseph Moore
                                                                                                                 Joseph.Moore@morganstanley.com
                                                                                                                 +1 212 761 7516

                                                                                                                 Sean Hazlett, CFA
                                                                                                                 Sean.Hazlett@morganstanley.com
                                                                                                                 +1 (1)415 576 2388
                August 17, 2012
Stock Rating
Overweight
                Marvell Technology
                Group Ltd
Industry View
In-Line                                                                      Key Ratios and Statistics

                Macro Headwinds Limit                                        Reuters: MRVL.O Bloomberg: MRVL US
                                                                             Semiconductors / United States of America
                                                                                                                                                $16.00
                Near-Term Outlook                                            Price target
                                                                             Shr price, close (Aug 16, 2012)                                    $12.28
                                                                             Mkt cap, curr (mm)                                                 $6,906
                                                                             52-Week Range                                                $16.86-10.27
                What's Changed
                Price Target                              $17.50 to $16.00   Fiscal Year ending                     01/11     01/12    01/13e     01/14e
                                                                             EPS ($)**                               1.65      1.27       0.98      1.22
                                                                             Consensus EPS ($)§                      1.65      1.24       1.13      1.33
                We expect MRVL to benefit from ongoing                       ModelWare EPS ($)                       1.47      1.08       0.77      0.99
                diversification across all three of its business             P/E                                     12.9      14.4       16.0      12.4
                                                                             Unless otherwise noted, all metrics are based on Morgan Stanley ModelWare
                segments (Storage, Networking, and Mobile), which            framework (please see explanation later in this note).
                will drive outsized revenue growth opportunities.            § = Consensus data is provided by Thomson Reuters Estimates.
                                                                             ** = Based on consensus methodology
                                                                             e = Morgan Stanley Research estimates

                Remain Overweight: Despite a lower than anticipated
                revenue outlook, we believe the attractive free cash flow    Quarterly EPS
                generation coupled with management’s commitment to                                                  2012      2012     2013e      2013e
                returning cash to shareholders provides solid support for    Quarter                     2011       Prior Current        Prior Current
                the stock at current levels.                                 Q1                           0.38           -     0.29          -     0.23a
                                                                             Q2                           0.40           -     0.38          -     0.24a
                What's new: MRVL reported F2Q13 revenue of $816M             Q3                           0.45           -     0.40       0.29      0.25
                (up 2% Q/Q) below our $840M estimates and guidance           Q4                           0.40           -     0.21       0.32      0.27
                                                                             e = Morgan Stanley Research estimates, a = Actual company reported data
                ($840 – 890M) due to a weakening macro environment
                and lower volumes at RIMM. Below guidance gross
                margin of 53.6% resulted in EPS of $0.24, ~$0.01 below
                our estimates. Mobile & Wireless declined 5% Q/Q,
                driven by lower shipments to RIMM and slower Chinese
                TD demand. Networking outperformed the market
                increasing 4% Q/Q. Storage increased 7% Q/Q. MRVL
                also repurchased ~20M shares for $250M and paid its
                first quarterly dividend of $0.06.

                F3Q13 revenue guidance was $800–850M, driven by
                weaker macro and cellular customer revenue. Gross
                margin is expected to be flat at 53.5%. Management
                expects Storage to be up by low-single digits Q/Q with       Morgan Stanley does and seeks to do business with
                                                                             companies covered in Morgan Stanley Research. As
                flat HDD demand. Mobile & Wireless is expected to be         a result, investors should be aware that the firm may
                down mid-single digits on RIMM weakness while                have a conflict of interest that could affect the
                Networking is projected to be up low-single digits Q/Q.      objectivity of Morgan Stanley Research. Investors
                                                                             should consider Morgan Stanley Research as only a
                Lowering PT from $17.50 to $16: Our F13 and F14              single factor in making their investment decision.
                EPS is lowered to $0.98 (from $1.10) and to $1.22 (from      For analyst certification and other important
                $1.55). Our $16.00 PT is ~9x C13 EPS plus ~$4 in cash.       disclosures, refer to the Disclosure Section,
                                                                             located at the end of this report.
                                                                                                MORGAN                              STANLEY        RESEARCH

                                                                                                August 17, 2012
                                                                                                Marvell Technology Group Ltd




Risk-Reward Snapshot: Marvell Technology Group
Ltd (MRVL $12.28, OW, PT $16.00)                                                                                                                Investment Thesis

Risk-Reward View: HDD Recovery + Revenue Diversification from                                                                                   -Marvell’s competitive positioning
Storage, Networking, and Mobile & Wireless Drives Outperformance                                                                                 within its served end markets,
    $30
                                                                                                                                                 strong cash flow, and new growth
                                                                                                                                                 opportunities, should drive above
     25                                                                                            $25.00 (+104%)
                                                                                                                                                 average returns.
                                                                                                                                                -Recovery in the HDD supply chain
                                                                                                                                                 should improve visibility in 2012
     20

                                                                                                                                                Key Value Drivers
                                                                                                    $16.00 (+30%)
     15
                                                                              $ 12.28                                                           -Share gains within the desktop
                                                                                                                                                 and notebook HDD space, in
     10
                                                                                                       $9.00 (-27%)                              addition to the already announced
                                                                                                                                                 relationship for enterprise HDDs.
      5                                                                                                                                         -Share gains with new tier-1
                                                                                                                                                 handset OEMs beyond RIMM
      0                                                                                                                                         -Design wins in tablets
      Aug-10             Feb-11           Aug-11            Feb-12            Aug-12         Feb-13                         Aug-13
                                                                                                                                                -Visibility into new HDD customer
           Price Target (Aug-13)               Historical Stock Performance             Current Stock Price
                                                                                                                                                 ramp
                                                                                                              WARNINGDONOTEDIT_RRS4RL~MRVL.O~




 Price Target: $16                 Our $16.00 PT assumes 10x C13 adj. EPS of $1.22 ex cash plus                                                 Key Concerns: Risks
                                   ~$4 in cash, a discount to our broader semi universe.                                                        -HDD inventory build translates to
                                                                                                                                                 significantly weaker demand
 Bull              ~10x adj.       Better than expected growth in new markets. Assumes MRVL                                                      environment and aggressive
 Case              2013 Bull       gains share of discrete application processor market. Also
                                                                                                                                                 pricing
 $25               Case EPS of     assumes MRVL gains 20% mbl and dt share at a major customer in
                                                                                                                                                -Share loss at Western Digital to
                   $2.18 ex        2012/2013. Gross margin expand towards 60% on transition to
                   cash + cash     copper.
                                                                                                                                                 alternative HDD silicon vendors
                   per share of                                                                                                                 -Lack of traction from new product
                   ~$4                                                                                                                           introductions in the NAND
                                                                                                                                                 controller and advanced television
 Base              ~10x adj.       Continued recovery in HDD with market share gains driven by
                                                                                                                                                 markets
 Case              2013 Base       500G platters; some new growth in emerging markets. MRVL
                                                                                                                                                -Share loss to QCOM and BRCM in
 $16               Case EPS of     maintains approximately 60% HDD share through 2013. Gross
                   $1.22 ex        margin remains in the mid-high 50’s with operating margins in the
                                                                                                                                                 the WLAN market.
                   cash + cash     mid-20’s.                                                                                                    Potential Catalysts
                   per share of
                   ~$4                                                                                                                          Positive
                                                                                                                                                -Design wins announcements with
 Bear              1.75x P/S       Traditional market share stalls; little new market growth.
                                                                                                                                                tier-1 handset and tablet vendors.
 Case              2013 Bear       Assumes slower than expected ramp into Seagate due to a
 $9                Case            weak-than-anticipated recovery in HDDs as well a high than
                   Revenue of      anticipated competition in Mobile and Wireless.
                   ~$3.1B
Source: Morgan Stanley, Thomson Reuters




                                                                                                                                                                                 2
                                                                                                      MORGAN           STANLEY       RESEARCH

                                                                                                      August 17, 2012
                                                                                                      Marvell Technology Group Ltd




Exhibit 1
F2Q13 (July Quarter) Income Statement Summary
                                                                                          Income Statement
      Qtr Results:                 Actual                   Lst Qtr        QoQ            Lst Yr     YoY     Consensus     MSe                       Comments
        Revenue                    $816.1                   $796.4         2%            $897.5      -9%      $852.7     $840.0   Up 6-12% Q/Q
     Gross Margin                   53.6%                    54.5%       -95 bps          58.1%   -453 bps                54.6%   54.5% +/- 50bps
         EPS **                     $0.24                    $0.23        $0.06           $0.38    ($0.35)     $0.26      $0.26   $0.28 +/- couple pennies
    Nxt Qtr Outlook:       Low       High     Midpoint
        Revenue           $800       $850      $825                            1%        $950.4     -13%      $914.9     $880.0   $800 - 850 million
     Gross Margin         53.0%     54.0%      53.5%                         -6 bps       56.8%   -334 bps                55.1%   53.5% +/- 50 bps
         EPS **           $0.22     $0.26      $0.24                        ($0.00)       $0.40    ($0.16)     $0.31      $0.29   $0.24 +/- $0.02


•       Reported EPS of $0.24 (excl. 1x/SBC) was ~$0.01 below our estimates and ~$0.02 below consensus
•       Revenues of $816M were well below our estimates of $840M, and below the $840 – 890M of revenue guidance due to weaker
        macro conditions and lower RIM shipments
•       Gross margins (non-GAAP) of 53.6% decreased by 95 bps Q/Q and were ~100 bps below our estimates
•       Guided for 3FQ13 revenue of $800-850 million and EPS of $0.24

** EPS excludes stock-based compensation and extraordinary one-time items
E = Morgan Stanley Research Estimates
Source: Morgan Stanley, Company Data

Exhibit 2
F2Q13 (July Quarter) Balance Sheet Summary
                     Balance Sheet                                                                •     Inventory days decreased by ~5 days Q/Q
        Qtr Ended:      Apr-12    Jul-12                      Δ                                   •     Days receivable decreased by ~4 days Q/Q
              Revenue $796.4     $816.1                     19.8
                COGS 362.3         379.0                    16.7
                   AR 417.4        390.8                    -26.6
             Inventory 353.4       345.7                     -7.7
               AR DSO    47.8       43.7                     -4.1
       Inventory Days    87.8       82.4                     -5.4

E = Morgan Stanley Research Estimates
Source: Morgan Stanley, Company Data

Exhibit 3
F2Q13 Actual vs. Estimates
Non-GAAP financials, $ in Millions except per share                                               •     Reported non-GAAP EPS (excl 1x/SBC) was ~$0.01 lower
                                  Reported      MS Est Difference             Per share
                                                                                                        than our estimates
                                    F2Q13       F2Q13 Act. vs. Est.           Difference
Total Revenue                        816.1        840.0             (23.9)            (0.04)
                                                                                                  •     Lower reported revenue accounted for the largest delta
                                                                                                        between our estimates and reported results
Cost of Sales                        379.0        381.7              (2.7)              NM
Gross Profit                         437.1        458.3             (21.2)            (0.04)
     Gross Margin                   53.6%        54.6%              -1.0%

    R&D                              241.3        245.1              (3.9)              NM
    Selling & marketing               37.5         37.7              (0.2)              NM
    General & administrative          19.1         21.1              (2.0)              NM
    Other Opex (inc)                    0.0           0.0             0.0               NM
    Total Op Expenses                297.8        303.9              (6.1)             0.00

Operating Income                     139.3        154.3             (15.1)            (0.03)
    Operating Margin                17.1%        18.4%              -1.3%

Income tax provision                   3.1          1.9                1.2               NM
Net Income                           142.0        154.4             (12.4)            (0.02)
EPS                                  $0.24        $0.26         ($0.01)               (0.01)

Diluted Shares Out.                  586.6        602.0             602.0


E = Morgan Stanley Research Estimates
Source: Morgan Stanley, Company Data




                                                                                                                                                                3
                                                                                        MORGAN            STANLEY            RESEARCH

                                                                                        August 17, 2012
                                                                                        Marvell Technology Group Ltd




Exhibit 4
End Market Summary
Business Segment                              2FQ13 Result                                                         3FQ13 Guidance
1. Mobile / Wireless                          • Down and lower than forecasted as RIMM shipped lower volumes and   • Down in the mid single digits Q/Q, due to continued
                                                TD-SCDMA demand in China was lower than expected                     smartphone demand weakness in North America
~27% of total revenue, down 5% sequentially                                                                          offset by near-term favorable demand and competitive
                                                                                                                     trends in China
                                                                                                                   • MRVL expects TD revenue for the next 3-6 months to
                                                                                                                     be muted due to macro and product line refresh
                                                                                                                   • Weaker-than-seasonal demand in printer and
                                                                                                                     game console wireless connectivity
2. Networking                                 • Grew better than overall networking end market                     • Up low-single digits Q/Q, driven by new product areas
                                              • New products, including PON (up >30% QQ), 10G switching, and
~22% of total revenue, up 4% sequentially       network processing (up > 15% Q/Q) combined grew ~25% Q/Q
3. Storage                                    • 500 GB per platter mobile storage solutions revenue up >30%        • Up by low single digits Q/Q
                                                driving ~1/3 of shipments                                          • Flat HDD demand
~47% of total revenue, up 7% sequentially     • SSDs:Up ~25% Q/Q primarily from new customer ramps                 • SSDs: >25% growth Q/Q

4. Other Products


5. New Products



Source: Morgan Stanley, Company Data




                                                                                                                                                                             4
                                                                                            MORGAN               STANLEY             RESEARCH

                                                                                            August 17, 2012
                                                                                            Marvell Technology Group Ltd




Exhibit 5
Marvell Technology Group Income Statement
Marvell Technology Income Statement                   C1Q12A    C2Q12A   C3Q12E    C4Q12E    C1Q13E    C2Q13E   C3Q13E    C4Q13E                      CY2011A   CY2012E   CY2013E
($ in millions; fiscal year ends in January)           Apr-12    Jul-12    Oct-12   Jan-13    Apr-13    Jul-13   Oct-13    Jan-14                       Jan-12    Jan-13    Jan-14
                                                      F1Q13A    F2Q13A   F3Q13E    F4Q13E    F1Q14E    F2Q14E   F3Q14E    F4Q14E                      FY2012A   FY2013E   FY2014E
Revenues - GAAP                                     $   796.4 $  816.1 $   825.0 $   840.0 $   800.0 $  850.0 $   920.0 $   950.0                    $ 3,393.0 $ 3,277.5 $ 3,520.0
 Sequential Change                                       7.2%      2.5%     1.1%      1.8%     -4.8%     6.3%      8.2%      3.3%
 Y-o-Y Change                                           -0.8%     -9.1%   -13.2%    13.1%       0.5%     4.2%    11.5%     13.1%                          -6.1%         -3.4%          7.4%

COGS - non GAAP                                         362.3       379.0       384.3       384.6        358.2       372.2       393.7       406.6       1,457.4       1,510.2       1,530.7
 Percentage of MW Revenues                              45.5%       46.4%       46.6%       45.8%        44.8%       43.8%       42.8%       42.8%        43.0%         46.1%         43.5%

Gross Profit - non GAAP                                 434.1       437.1       440.7       455.4        441.8       477.8       526.3       543.4       1,935.7       1,767.3       1,989.3
 Gross Margin non GAAP%                                 54.5%       53.6%       53.4%       54.2%        55.2%       56.2%       57.2%       57.2%        57.0%         53.9%         56.5%

R&D - non GAAP                                          238.4       241.3       241.6       242.5        238.0       243.2       250.3       253.1        923.6         963.7         984.7
 Percentage of MW Revenues                              29.9%       29.6%       29.3%       28.9%        29.8%       28.6%       27.2%       26.6%        27.2%         29.4%         28.0%

Selling and marketing - non GAAP                        37.0        37.5        37.7         38.1        36.7        38.4        40.6        41.5         146.5         150.3         157.3
 Percentage of MW Revenues                              4.6%        4.6%        4.6%         4.5%        4.6%        4.5%        4.4%        4.4%          4.3%          4.6%          4.5%

General and administrative - non GAAP                   20.7        19.1        19.1         19.3        25.1        27.1        29.8        30.9          81.7          78.2         113.0
 Percentage of MW Revenues                              2.6%        2.3%        2.3%         2.3%        3.1%        3.2%        3.2%        3.3%          2.4%          2.4%          3.2%

Total Operating Expenses - GAAP                         336.1       344.0       344.9       346.9        347.3       356.4       368.8       374.0       1,323.1       1,371.9       1,446.5
Total Operating Expenses - non GAAP                     296.0       297.8       298.4       299.9        299.9       308.7       320.8       325.6       1,151.8       1,192.2       1,254.9

Operating Income - non GAAP                             138.1       139.3       142.3       155.5        141.9       169.2       205.5       217.8        783.9         575.1         734.4
 Operating Margin non GAAP%                             17.3%       17.1%       17.2%       18.5%        17.7%       19.9%       22.3%       22.9%        23.1%         17.5%         20.9%

Total Interest income and other income - non GAAP         1.1         5.9         2.0         3.0          6.0         6.0         6.0         6.0         14.9          11.9          24.0

PBT - non GAAP                                          139.1       145.1       144.3       158.5        147.9       175.2       211.5       223.8        798.8         587.0         758.4
 PBT Margin non GAAP%                                   17.5%       17.8%       17.5%       18.9%        18.5%       20.6%       23.0%       23.6%        23.5%         17.9%         21.5%

Income Tax Expense (Benefit) - non GAAP                   0.4         3.1         1.9          2.5         3.9         4.9         6.1         6.5           4.0           7.9         21.4
  Effective Tax rate non GAAP%                          0.3%        2.1%        1.3%         1.5%        2.6%        2.8%        2.9%        2.9%          0.5%          1.3%          2.8%

Net Income, Cont. Ops. - GAAP                            94.5        93.1        94.1       107.2         94.8       120.8       155.4       167.0        615.1         389.0         538.0
 Net Income Margin GAAP%                                11.9%       11.4%       11.4%       12.8%        11.9%       14.2%       16.9%       17.6%        18.1%         11.9%         15.3%
Net Income, Cont. Ops. - non GAAP                       138.7       142.0       142.4       156.0        144.0       170.3       205.4       217.3        794.8         579.1         737.0
 Net Income Margin non GAAP%                            17.4%       17.4%       17.3%       18.6%        18.0%       20.0%       22.3%       22.9%        23.4%         17.7%         20.9%

EPS - GAAP                                          $    0.16   $    0.16   $    0.16   $    0.19    $    0.16   $    0.20   $    0.26   $    0.28   $     0.99    $     0.67    $     0.90
EPS - non GAAP                                      $    0.23   $    0.24   $    0.25   $    0.27    $    0.24   $    0.28   $    0.34   $    0.36   $     1.27    $     0.98    $     1.22
EPS - MW                                            $    0.18   $    0.19   $    0.19   $    0.21    $    0.18   $    0.22   $    0.28   $    0.30   $     1.08    $     0.77    $     0.99


E = Morgan Stanley Research Estimates
Source: Morgan Stanley, Company Data




                                                                                                                                                                                          5
                                                                                                   MORGAN                  STANLEY                RESEARCH

                                                                                                   August 17, 2012
                                                                                                   Marvell Technology Group Ltd




Exhibit 6
Marvell Technology Group Balance Sheet
Marvell Technology Balance Sheet                         C1Q12A        C2Q12A        C3Q12E        C4Q12E        C1Q13E        C2Q13E        C3Q13E        C4Q13E        CY2011A        CY2012E        CY2013E
($ in millions; fiscal year ends in January)              Apr-12        Jul-12        Oct-12        Jan-13        Apr-13        Jul-13        Oct-13        Jan-14         Jan-12         Jan-13         Jan-14
                                                         F1Q13A        F2Q13A        F3Q13E        F4Q13E        F1Q14E        F2Q14E        F3Q14E        F4Q14E        FY2012A        FY2013E        FY2014E
Assets
 Cash and cash equivalents                           $     880.6   $     906.1   $   1,114.9   $   1,258.8   $   1,406.5   $   1,551.6   $   1,722.0   $   1,919.2   $      784.9   $    1,258.8   $    1,919.2
 Short-term investments                                  1,322.1       1,228.1       1,228.1       1,228.1       1,228.1       1,228.1       1,228.1       1,228.1        1,461.6        1,228.1        1,228.1
 Accounts receivable, net                                  417.4         390.8         361.6         368.2         350.7         372.6         403.3         416.4          407.3          368.2          416.4
 Inventories                                               353.4         345.7         211.6         211.7         197.3         204.9         216.8         223.8          354.1          211.7          223.8
 Prepaid expenses and other current assets                  57.5          58.9          88.7          86.2          86.4          85.8          86.5          87.5           71.1           86.2           87.5
 Deferred income taxes                                      10.6             -             -             -             -             -             -             -              -              -              -
Total Current Assets                                     3,041.6       2,929.6       3,004.9       3,153.0       3,268.9       3,443.1       3,656.7       3,875.1        3,079.0        3,153.0        3,875.1

 Property and equipment, net                               382.4         381.2         387.3         393.4         397.8         403.3         410.3         417.6          383.8          393.4          417.6
 Long-term investments                                      23.2          18.1          18.1          18.1          18.1          18.1          18.1          18.1           23.2           18.1           18.1
 Goodwill                                                2,032.0       2,032.0       2,032.0       2,032.0       2,032.0       2,032.0       2,032.0       2,032.0        2,032.0        2,032.0        2,032.0
 Acquired intangible assets, net                           127.2         114.1         114.1         114.1         114.1         114.1         114.1         114.1          141.5          114.1          114.1
 Other non-current assets                                  112.2         109.6         172.4         172.8         171.7         173.1         175.1         176.2          108.1          172.8          176.2
Total Assets                                             5,718.5       5,584.6       5,728.8       5,883.5       6,002.7       6,183.6       6,406.3       6,633.2        5,767.6        5,883.5        6,633.2

Liabilities & Shareholders Equity
  Accounts payable                                        323.4         335.1         338.5         338.8         315.6         327.9         346.8         358.1          304.7          338.8          358.1
  Accrued liabilities                                     108.1         108.1         108.1         108.1         108.1         108.1         108.1         108.1           87.7          108.1          108.1
  Accrued employee compensation                           136.6         115.4         115.4         115.4         115.4         115.4         115.4         115.4          137.2          115.4          115.4
  Income taxes payable                                        -             -             -             -             -             -             -             -              -              -              -
  Deferred income                                          65.4          67.8          67.8          67.8          67.8          67.8          67.8          67.8           60.0           67.8           67.8
  Current portion of capital lease obligations                -             -             -             -             -             -             -             -              -              -              -
Total Current Liabilities                                 633.5         626.4         629.8         630.1         607.0         619.2         638.2         649.5          589.6          630.1          649.5

 Capital lease obligations, net of current portion            -             -             -             -             -             -             -             -              -              -              -
 Non-current income taxes payable                         130.7         123.3         123.3         123.3         123.3         123.3         123.3         123.3          131.6          123.3          123.3
 Term loan obligations, long-term portion                     -             -             -             -             -             -             -             -              -              -              -
 Other long-term liabilities                               31.7          31.7          31.7          31.7          31.7          31.7          31.7          31.7           32.5           31.7           31.7

Shareholders Equity                                      4,922.5       4,803.1       4,944.0       5,098.4       5,240.7       5,409.4       5,613.1       5,828.7        5,014.0        5,098.4        5,828.7

Total Liabilities & Equity                               5,718.5       5,584.6       5,728.8       5,883.5       6,002.7       6,183.6       6,406.3       6,633.2        5,767.6        5,883.5        6,633.2



E = Morgan Stanley Research Estimates
Source: Morgan Stanley, Company Data




                                                                                                                                                                                                             6
                                                                                                                      MORGAN            STANLEY             RESEARCH

                                                                                                                      August 17, 2012
                                                                                                                      Marvell Technology Group Ltd




Exhibit 7
Marvel Technology Group Cash Flow Statement
Marvell Technology Statement of Cash Flows                                           C1Q12A     C2Q12A     C3Q12E       C4Q12E     C1Q13E     C2Q13E     C3Q13E     C4Q13E     CY2011A     CY2012E     CY2013E
($ in millions; fiscal year ends in January)                                          Apr-12     Jul-12     Oct-12       Jan-13     Apr-13     Jul-13     Oct-13     Jan-14      Jan-12      Jan-13      Jan-14
                                                                                     F1Q13A     F2Q13A     F3Q13E       F4Q13E     F1Q14E     F2Q14E     F3Q14E     F4Q14E     FY2012A     FY2013E     FY2014E
Cash flows provided by (used for) operating activities:
Net income                                                                             94.5       93.1       94.1        107.2       94.8      120.8      155.4      167.0       615.1       389.0       538.0
 Adjustments to reconcile net income to net cash provided by operating activities:                                                                                                  -           -           -
   Depreciation and amortization                                                       21.2       21.3       18.6         19.1       19.6       20.1       20.6       21.1        88.5        80.2        81.4
   Stock-based compensation                                                            27.2       33.2       33.7         34.2       34.5       34.9       35.2       35.6       119.9       128.3       140.3
   Amortization and write-off of acquired intangible assets                            14.4       13.0       13.0         13.0       13.0       13.0       13.0       13.0        49.4        53.4        52.1
   Deferred income taxes                                                                  -          -          -            -          -          -          -          -          -           -           -
   Excess tax benefits from stock-based compensation                                   (0.0)      (0.0)         -            -          -          -          -          -        (0.2)       (0.0)         -
   Others                                                                               2.9        2.3          -            -          -          -          -          -        15.2         5.2          -
   Changes in assets and liabilities, net of effects of acquisitions:
      Restricted cash                                                                     -          -          -            -          -          -          -          -           -          -           -
      Accounts receivable, net                                                        (10.1)      26.6       29.1         (6.6)      17.5      (21.9)     (30.7)     (13.2)        54.6       39.0       (48.2)
      Inventories                                                                       0.2        7.8      134.2         (0.2)      14.5       (7.7)     (11.8)      (7.1)      (101.1)     142.0       (12.1)
      Prepaid expenses and other current assets                                         4.2       11.4      (92.6)         2.1        0.9       (0.8)      (2.7)      (2.1)        27.5      (74.8)       (4.8)
      Accounts payable                                                                 21.2        6.3        3.4          0.3      (23.1)      12.3       18.9       11.3        (47.1)      31.2        19.4
      Accrued liabilities and other                                                    18.1       (4.2)         -            -          -          -          -          -        (21.6)      13.9          -
      Accrued employee compensation                                                    (0.6)     (24.0)         -            -          -          -          -          -        (12.6)     (24.7)         -
      Income taxes payable                                                                -          -          -            -          -          -          -          -           -          -           -
      Deferred income                                                                   5.5        2.4          -            -          -          -          -          -        (16.2)       7.9          -
Net cash provided by operating activities                                             198.7      189.2      233.5        169.1      171.7      170.6      198.0      225.7        771.2      790.5       766.0

Cash flows from investing activities:
 Purchases of investments                                                             (421.7)    (226.0)         -            -          -          -          -          -    (1,853.4)     (647.7)         -
 Sales and maturities short-term and long-term of investments                          558.8      322.5          -            -          -          -          -          -     1,462.2       881.3          -
 Purchases of property and equipment                                                   (18.9)     (10.8)     (24.8)       (25.2)     (24.0)     (25.5)     (27.6)     (28.5)      (88.8)      (79.7)     (105.6)
 Others                                                                                 (7.0)      (4.4)         -            -          -          -          -          -      (110.0)      (11.5)         -
Net cash used for investing activities                                                 111.2       81.3      (24.8)       (25.2)     (24.0)     (25.5)     (27.6)     (28.5)     (590.1)      142.5      (105.6)

Cash flows from financing activities:
 Repurchase of common stock                                                           (223.2)    (250.3)         -            -          -          -          -          -    (1,340.9)     (473.5)         -
 Proceeds from issuance of common shares                                                17.8       39.5          -            -          -          -          -          -        97.9        57.3          -
 Principal payments on capital lease obligations                                           -          -          -            -          -          -          -          -        (0.5)         -           -
 Excess tax benefits from stock-based compensation                                      (8.8)     (34.1)         -            -          -          -          -          -         0.2       (43.0)         -
Net cash used for financing activities                                                (214.2)    (244.9)         -            -          -          -          -          -    (1,243.4)     (459.1)             -

Cash and cash equivalents, beginning of period                                        784.9      880.6      906.1       1,114.9    1,258.8    1,406.5    1,551.6    1,722.0     1,847.1       784.9     1,258.8
Change in cash flow due to restatement                                                                                                                                               -           -           -
Net increase (decrease) in cash and cash equivalents                                   95.7       25.5       208.8        143.9      147.7      145.1      170.4      197.2    (1,062.2)      473.9       660.4
Cash and cash equivalents, end of period                                              880.6      906.1     1,114.9      1,258.8    1,406.5    1,551.6    1,722.0    1,919.2       784.9     1,258.8     1,919.2



E = Morgan Stanley Research Estimates
Source: Morgan Stanley, Company Data




                                                                                                                                                                                                             7
                                                                                                  MORGAN               STANLEY             RESEARCH

                                                                                                  August 17, 2012
                                                                                                  Marvell Technology Group Ltd




Exhibit 8
Semiconductor Valuation Table
x                                                                                                                                                                                            2012                                     2013
                         Stock    Price on    YTD      % of 52   Market     Ent.       Revenue          09-13   Gross Margin   Operating Margin    Adj EPS (excl 1x/SBC)             P/E          EV /        FCF             P/E          EV /    FCF
    Company     Ticker   Rating   8/16/2012   Perf.    Wk High    Cap.     Value     2012   2013       % CAGR   2012    2013    2012     2013     2011     2012      2013      Adj     Inc SBC Sales          Yield     Adj     Inc SBC Sales      Yield

Comm-IC / Multi-Market
AEROFLEX         ARX      UW          $6.15      NA       44%       $522    $1,147    $691     $749       NA     50%     51%      17%     20%     $0.85       $0.70    $1.10    8.8x      9.2x     1.7x        6.9%      5.6x      5.8x     1.5x    6.3%
AVAGO           AVGO      EW         $36.91     28%       94%     $9,338    $8,384   $2,408   $2,660    14.1%    51%     52%      30%     30%     $2.67       $2.81    $3.04   13.1x     14.3x     3.5x        1.8%     12.1x     13.2x     3.2x    1.7%
BROADCOM        BRCM      OW         $36.02     23%       91%    $20,531   $20,052   $7,973   $8,805    18.3%    53%     52%      22%     22%     $2.92       $2.96    $3.20   12.2x     15.5x     2.5x        7.7%     11.3x     15.9x     2.3x    9.5%
CAVIUM          CAVM      OW         $32.42     14%       84%     $1,599    $1,534    $238     $364     37.7%    62%     65%       7%     24%     $1.10       $0.42    $1.65   77.4x       NM      6.4x        5.8%     19.6x     36.8x     4.2x    5.8%
INPHI            IPHI     EW         $11.43     (4%)      67%       $340     $220      $95     $127     21.2%    64%     62%      10%     14%     $0.25       $0.25    $0.49   46.5x       NM      2.3x        5.1%     23.1x       NM      1.7x    7.2%
INVENSENSE       INVN     EW         $13.76     38%       62%     $1,204    $1,046    $197     $300       NA     55%     55%      32%     36%     $0.99       $0.59    $0.96   23.5x     26.7x     5.3x        4.2%     14.3x     15.6x     3.5x    7.0%
LSI              LSI      EW          $7.81     31%       85%     $4,612    $3,989   $2,587   $2,720     5.2%    53%     54%      17%     19%     $0.47       $0.77    $0.81   10.2x     13.4x     1.5x        2.6%      9.6x     12.2x     1.5x    9.2%
MARVELL         MRVL      OW         $12.28    (11%)      73%     $7,436    $5,234   $3,277   $3,520     5.8%    54%     57%      18%     21%     $1.27       $0.98    $1.22   12.5x     16.0x     1.6x       13.6%     10.1x     12.4x     1.5x   12.6%
MAXLINEAR        MXL      EW          $5.60     18%       80%       $187     $110     $102     $123     24.4%    61%     61%       6%     11%     ($0.11)     $0.17    $0.38   33.3x       NM      1.1x       25.2%     14.9x       NM      0.9x    7.7%
NXPI             NXPI     EW         $25.74     67%       94%     $6,508    $9,555   $4,446   $4,885     8.5%    46%     47%      19%     21%     $1.70      $1.82     $2.75   14.1x     14.1x     2.1x        1.5%      9.3x      9.3x     2.0x    5.2%
SKYWORKS        SWKS      EW         $29.63     83%       98%     $5,660    $5,353   $1,606   $1,760    20.4%    44%     45%      24%     26%     $1.96      $1.87     $2.02   15.9x     18.8x     3.3x       10.9%     14.7x     14.7x     3.0x    5.2%


PLD
ALTERA          ALTR      OW         $36.69     (1%)      88%    $12,000    $9,030   $1,833   $2,190     7.6%    70%     69%      37%     41%     $2.59      $2.01     $2.47   18.3x     20.3x     4.9x        7.2%     14.9x     16.5x     4.1x    8.3%
LATTICE         LSCC      EW          $4.02    (32%)      56%       $475     $279     $288     $339      6.7%    53%     55%       2%      9%     $0.75      ($0.10)   $0.24    NM         NM      1.0x       (15.8%)   17.1x     20.7x     0.8x    2.4%
XILINX          XLNX      EW         $34.11      6%       90%     $9,420    $8,409   $2,265   $2,525     4.4%    66%     64%      31%     31%     $2.34      $2.10     $2.28   14.6x     18.6x     3.7x        7.1%     15.0x     16.9x     3.3x    6.5%


Indices
S&P 500                             1,405.5     12%       99%                                                                                               $102.95 $110.00    13.7x                                    12.8x
SOX                                   408.3     12%       92%


Average                                         18%       78%                                            15%     56%     57%      19%     23%                                  23.1x     16.7x     2.9x        6.0%     13.7x     15.8x     2.4x    6.8%
Median                                          18%       84%                                            14%     54%     55%      18%     21%                                  14.6x     15.8x     2.4x        6.4%     14.5x     15.1x     2.1x    6.8%



E = Morgan Stanley Research Estimates
Source: Morgan Stanley, Company Data
For valuation methodology and risks associated with any price targets above, please email morganstanley.research@morganstanley.com with a request for valuation methodology and risks on a particular stock




                                                                                                                                                                                                          8
MORGAN        STANLEY          RESEARCH

August 17, 2012
Marvell Technology Group Ltd




                                          9
                                                                                MORGAN         STANLEY         RESEARCH

                                                                                August 17, 2012
                                                                                Marvell Technology Group Ltd




                                                      Morgan Stanley ModelWare is a proprietary analytic framework that helps clients
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                                                      basis. ModelWare also emphasizes the separation of operating performance of a company
                                                      from its financing for a more complete view of how a company generates earnings.



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                                                                                                                                                    10
                                                                                 MORGAN         STANLEY         RESEARCH

                                                                                 August 17, 2012
                                                                                 Marvell Technology Group Ltd




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                                        % of                   % of % of Rating
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                                                                                              MORGAN            STANLEY           RESEARCH

                                                                                              August 17, 2012
                                                                                              Marvell Technology Group Ltd




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Industry Coverage:Semiconductors

Company (Ticker)                              Rating (as of) Price* (08/16/2012)


Sanjay Devgan
Aeroflex Holding Corp. (ARX.N)               U (12/11/2011)                    $6.15
Altera Corporation (ALTR.O)                  O (05/30/2012)                   $36.69
Avago Technologies Ltd (AVGO.O)              E (12/11/2011)                   $36.91
Broadcom Corporation (BRCM.O)                O (05/18/2009)                   $36.02
Cavium Networks Inc. (CAVM.O)                O (12/14/2007)                   $32.42
Inphi Corporation (IPHI.N)                   E (04/29/2012)                   $11.43
InvenSense, Inc. (INVN.N)                    E (12/27/2011)                   $13.76
LSI Corporation (LSI.N)                      E (10/02/2007)                    $7.81
Lattice Semiconductor (LSCC.O)               E (07/18/2010)                    $4.02
Marvell Technology Group Ltd                 O (05/18/2009)                   $12.28
(MRVL.O)
MaxLinear, Inc. (MXL.N)                       E (10/04/2011)                    $5.6
NXP Semiconductor NV (NXPI.O)                 E (11/01/2011)                  $25.74
Skyworks (SWKS.O)                             E (01/10/2011)                  $29.63
Xilinx (XLNX.O)                               E (06/15/2011)                  $34.11
Joseph Moore
Advanced Micro Devices (AMD.N)               E (05/30/2012)                    $4.17
Analog Devices Inc. (ADI.O)                  O (05/30/2012)                   $40.85
Intel Corporation (INTC.O)                   U (05/30/2012)                   $26.59
Linear Technology Corp. (LLTC.O)             E (05/30/2012)                    $33.3
Maxim Integrated Products Inc.               O (05/30/2012)                    $28.8
(MXIM.O)
NVIDIA Corp. (NVDA.O)                        E (05/30/2012)                   $14.78
SanDisk Corporation (SNDK.O)                 O (05/30/2012)                    $42.7
Texas Instruments (TXN.O)                    E (05/30/2012)                   $30.27

Stock Ratings are subject to change. Please see latest research for each company.
* Historical prices are not split adjusted.




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