Marvell Technology Group‘s (MRVL) MRVL stock rose 5.5% on news that private equity firm KKR & Co (KKR) reported a 6.8% stake in the chipmaker.

KKR may engage in board discussions and with company management on a potential for a merger or reorganization (via Reuters).

Marvell, which sells chips to flash drive and mobile and wireless device makers, in November forecast fourth-quarter revenue above analysts’ estimates.

About 47 percent of Marvell’s revenue last year came from storage customers such as Western Digital Corp and Seagate Technology, for whom it makes chips used for reading and writing data on hard-disk and flash drives.

Such a marriage with KKR could give Marvell the real competitive boost it needs.

Insiders have wondered aloud how Marvell can compete against heavyweights such as Qualcomm (QCOM) and Broadcom (BRCM) in mobile.

It’s important to note that the company has been pursuing a growth-through-innovation strategy, with R&D expenditure of more than 30% of net revenue.

That is to say the MRVL and a merger with KKR would be an infusion of support (and cash) that could help spur its growth further.

And the future is really where it’s at for MRVL stock, if Marvell expands its LTE business in both North America and China in FY 2015.

This partnership gives it the wind at its back — and for investors, some potentially great news ahead of it.

Marvell Technology Group is a fabless semiconductor provider of application-specific standard products.The company develops complex System-on-a-Chip (SoC) devices.

MRVL stock is up 99% year to date.