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Microchip Technology Inc. (MCHP) develops, manufactures, and sells smart, connected, and secure embedded control solutions used in a wide variety of applications . The company's strategic focus includes general-purpose and specialized 8-bit, 16-bit, and 32-bit mixed-signal microcontrollers, microprocessors, analog, FPGA, and memory products . These products are part of their Total System Solution (TSS), which combines hardware, software, and services to help customers increase revenue, reduce costs, and manage risks .
- Mixed-Signal Microcontrollers - Develops and sells 8-bit, 16-bit, and 32-bit microcontrollers, forming the largest component of the company's semiconductor products segment.
- Analog Products - Offers a range of analog solutions that are integral to the company's semiconductor offerings.
- Other Products and Services - Includes FPGA products, memory products, and manufacturing services, contributing to the semiconductor products segment.
- Technology Licensing - Provides technology licensing services as a separate business segment.
| Name | Position | External Roles | Short Bio | Start Date | |
|---|---|---|---|---|---|
Steve Sanghi ExecutiveBoard | Interim CEO and President | Board Chair at Impinj, Inc. | Steve Sanghi has a long history with MCHP, having served as CEO from 1991 to 2021. He was appointed interim CEO and President in November 2024. | Nov 18, 2024 | View Report > |
J. Eric Bjornholt Executive | Senior Vice President and CFO | None | J. Eric Bjornholt joined MCHP in 1995 and became CFO in January 2009. He was promoted to Senior Vice President in 2019. | Jan 2009 | |
Richard J. Simoncic Executive | Chief Operating Officer | None | Richard J. Simoncic joined MCHP in 1990 and became COO in April 2024. He has held various leadership roles in the Analog Power and Interface Business Units. | Apr 1, 2024 | |
Ellen L. Barker Board | Board Member | None | Ellen L. Barker joined the MCHP Board in February 2024. She has extensive experience in technology and finance, having held senior roles at Texas Instruments. | Feb 2, 2024 | |
Karen M. Rapp Board | Director | Board Member at Plexus Corp. | Karen M. Rapp has been a director since January 2021. She has held senior roles at National Instruments and NXP Semiconductors. | Jan 2021 | |
Karlton D. Johnson Board | Director | CEO of DeLaine Strategy Group LLC, CEO of National Space Society | Karlton D. Johnson has served as a director since April 2021. He is known for his expertise in strategic leadership and cybersecurity. | Apr 2021 | |
Matthew W. Chapman Board | Director, Chair of the Audit Committee | None | Matthew W. Chapman has been a director since 1997 and is recognized as an audit committee financial expert. | May 1997 | |
Robert A. Rango Board | Director | Board Member at KLA Corporation and Keysight Technologies, Inc. | Robert A. Rango joined the MCHP Board in January 2023. He has significant executive experience in the technology industry. | Jan 3, 2023 | |
Victor Peng Board | Director | None | Victor Peng was appointed to the MCHP Board in February 2025. He previously served as president of AMD. | Feb 10, 2025 |
- Given the prolonged reliance on high turns business due to customer uncertainty and short lead times, what specific actions is Microchip taking to encourage customers to place longer-term orders to improve visibility into future demand?
- With the downturn being deeper and longer than anticipated, how is Microchip managing the risks of significant inventory write-downs or the need for restructuring, and can you assure investors that the dividend will be maintained without impacting the company's long-term financial health?
- As competitors report low to mid-single-digit pricing declines for 2025, how does Microchip plan to adjust its pricing strategy to stay competitive without eroding profit margins, particularly amidst aggressive pricing in new design wins?
- Underutilization charges and elevated inventory reserves are significantly impacting gross margins; what are your plans to mitigate these pressures, and at what revenue levels do you anticipate gross margins returning to historical norms?
- You mentioned challenges in quantifying the success of your Total System Solutions strategy across your extensive customer base; how can investors evaluate the tangible impact of TSS on revenue growth and increased customer content going forward?
| Customer | Relationship | Segment | Details |
|---|---|---|---|
Arrow Electronics | Distributor | All | 13% of accounts receivable balance as of March 31, 2024 , 12% of net sales in fiscal 2024 , and 11% of net sales in fiscal 2023. |
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
VSI | 2024 | Microchip Technology's acquisition of VSI in April 2024 enhanced its automotive networking portfolio by incorporating VSI’s advanced ADAS and digital cockpit connectivity solutions, including the ASA Motionlink technology, to support next-generation software-defined vehicles. |
Neuronix AI Labs | 2024 | Completed in April 2024, the acquisition of Neuronix AI Labs strengthened Microchip’s edge AI capabilities by integrating neural network sparsity optimization technology that reduces power, size, and computational needs for tasks like image classification and object detection, aligning with its focus on low-power AI solutions for IoT and FPGA applications. |
Microsemi | 2018 | Finalized on May 29, 2018, this deal involved a total consideration of approximately $8.25 billion using a detailed mix of cash, secured borrowings, and other financing, aimed at broadening Microchip’s product portfolio for aerospace, defense, communications, data centers, and industrial markets, with subsequent integration of Microsemi as a wholly owned subsidiary. |
Recent developments and announcements about MCHP.
Earnings
New Earnings (Q3 2025)
·Feb 7, 2025, 5:01 AMView full earnings summary →Key Q3 takeaway: MCHP’s 2x normal design wins could drive above-market growth, but 266 days of inventory still weighs on margins. Management guides gross margin at 53% for the quarter and is rightsizing capacity. Once inventory corrects, stronger top-line is expected.
8-K Filings
8-K Filing
·Feb 19, 2025, 9:34 PMExit CostsView full 8-K filing →Microchip updates its restructuring plan: Fab 2 manufacturing will now close in May 2025, and the firm will reduce headcount by approximately 2,000 employees at costs of $30–40M, achieving annual operating savings of $90–100M, with ~$45M in supply agreement charges.