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    Chris Stanley • Citi

    Chris Stanley's questions to Microchip Technology Inc (MCHP) leadership

    Chris Stanley's questions to Microchip Technology Inc (MCHP) leadership • Q1 2026

    Question

    Chris Stanley asked about the expected incremental gross margin for the December quarter and requested CEO Steve Sanghi's assessment of Microchip's competitive position in microcontrollers since his return.

    Answer

    CFO Eric Bjornholt projected that incremental margins would be in a similar range to the June quarter. CEO Steve Sanghi acknowledged losing MCU share due to the prior PSP strategy but stated they are now regaining it. He detailed strategic actions to improve competitiveness, including introducing new low-end 32-bit MCUs, enabling industry-standard development tools, and launching a novel AI Coding Assistant.

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    Chris Stanley's questions to Microchip Technology Inc (MCHP) leadership • Q1 2026

    Question

    Chris Stanley asked about the expected incremental gross margin for the December quarter, given the planned increase in fab utilization. He also asked CEO Steve Sanghi for his assessment of Microchip's competitive positioning in microcontrollers since his return and the strategy for regaining market share.

    Answer

    CFO Eric Bjornholt projected that incremental gross margin and operating profit fall-through would be in a similar range to the June quarter. CEO Steve Sanghi acknowledged losing share due to the PSP strategy but noted they gained share in June. He outlined several strategic corrections, including developing new low-end 32-bit MCUs, enabling industry-standard development tools for their products, and launching an AI-powered coding assistant to improve customer productivity.

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