Here are 1-2 brief analogies for Microchip Technology (MCHP):

• Like **Texas Instruments (TI)** for microcontrollers and embedded systems.
• A highly diversified **Texas Instruments (TI)** that provides the 'brains' (microcontrollers) and 'senses' (analog chips) for countless electronic devices.

• Microcontrollers (MCUs): Tiny, specialized computers embedded in countless electronic devices to control their specific functions.
• Microprocessors (MPUs): More powerful programmable logic chips used in complex embedded systems, often running operating systems.
• Analog & Mixed-Signal Products: Components that manage power, amplify signals, convert data, and handle various real-world electrical functions.
• Field-Programmable Gate Arrays (FPGAs): Integrated circuits that can be configured by a customer or designer after manufacturing, providing flexible logic.
• Wireless Connectivity Solutions: Integrated circuits and modules enabling devices to communicate wirelessly via standards like Wi-Fi, Bluetooth, and LoRa.
• Timing & Synchronization Products: Devices providing precise clock signals and synchronization for various electronic systems and networks.

Microchip Technology (MCHP) primarily operates on a Business-to-Business (B2B) model, selling its semiconductor products to other companies rather than directly to individuals.

Based on their latest public filings, Microchip Technology serves a broad and diverse customer base. No single customer accounted for 10% or more of their net sales in fiscal years 2023, 2022, or 2021. This indicates that MCHP does not have a few concentrated "major customers" in the traditional financial reporting sense.

Instead, Microchip Technology's customer base consists of thousands of Original Equipment Manufacturers (OEMs), distributors, and contract manufacturers worldwide. These customers integrate MCHP's microcontrollers, analog, mixed-signal, and flash-IP solutions into a wide array of electronic products across various industries.

While Microchip Technology does not publicly disclose specific names of its individual major customers due to the fragmented nature of its sales, its components are widely used by companies in the following key markets. Below are examples of prominent companies within these markets that typically utilize semiconductor components like those offered by Microchip, and are therefore representative of their potential customer types:

• Automotive: Companies manufacturing vehicles or automotive electronics, e.g., Continental AG (XTRA: CON)
• Industrial: Companies producing industrial automation, smart energy, and medical devices, e.g., Siemens AG (XTRA: SIE)
• Computing & Consumer: Manufacturers of personal computers, servers, networking equipment, and consumer electronics, e.g., Apple Inc. (NASDAQ: AAPL), Dell Technologies Inc. (NYSE: DELL), Cisco Systems, Inc. (NASDAQ: CSCO)

• Taiwan Semiconductor Manufacturing Company Limited (TSM)
• United Microelectronics Corporation (UMC)

Steve Sanghi, Chair of the Board, CEO and President

Steve Sanghi was appointed Chief Executive Officer and President of Microchip Technology in November 2024, and also serves as Chair of the Board. He previously held the CEO role from October 1991 to March 2021. Prior to joining Microchip in February 1990, Mr. Sanghi started his career at Intel Corporation, where he rose to become General Manager of their programmable memory products division. He then served as Vice President of Operations at Waferscale Integration, a startup company. Companies he was previously involved with that were acquired include Waferscale Integration (acquired by STMicroelectronics NV in 2000) and Adflex Solutions, Inc. (acquired by Innovex, Inc. in 1999). Mr. Sanghi has also served on the boards of several other companies, including Mellanox Technologies Ltd., Hittite Microwave Corp., Xyratex Technology Ltd., FlipChip International LLC, Adflex Solutions Inc., Artisoft Inc., and Myomo Inc., and currently serves on the boards of Intel Corp and Impinj Inc.

Eric Bjornholt, Senior Corporate Vice President, Chief Financial Officer

Eric Bjornholt joined Microchip Technology in 1995 and has served as its Chief Financial Officer since 2009, in addition to his role as Senior Vice President. Before his tenure at Microchip, Mr. Bjornholt gained experience working for KPMG LLP.

Richard J. Simoncic, Chief Operating Officer

Richard J. Simoncic became Chief Operating Officer of Microchip Technology in April 2024, having joined the company as a new college graduate in 1989. He is recognized for founding Microchip's internal analog business in 1998, which he grew to achieve over $2 billion in annual revenue.

Michael A. Finley, Senior Corporate Vice President, Operations

Michael A. Finley joined Microchip Technology in 1990 and holds the position of Senior Vice President of Fab Operations. Prior to joining Microchip, he spent 10 years working in fab operations at Intel Corporation.

Joseph R. Krawczyk, Senior Corporate Vice President, Worldwide Client Engagement

Joseph R. Krawczyk has been with Microchip Technology since 1995, currently serving as Senior Vice President of Worldwide Client Engagement. His career at Microchip includes various leadership roles such as U.S. Southeast sales manager, ASEAN regional sales manager, and Vice President of Asia Pacific Client Engagement. Before Microchip, Mr. Krawczyk spent 14 years at Texas Instruments in engineering, marketing, and management capacities.

The key risks to Microchip Technology (MCHP) are primarily driven by the inherent characteristics of the semiconductor industry and global economic and political dynamics.

1. Cyclical Nature of the Semiconductor Industry and Inventory Fluctuations: Microchip Technology is significantly exposed to the cyclical nature of the semiconductor industry, which leads to substantial fluctuations in demand and revenue. The company has recently faced challenges such as revenue declines, margin compression, and high inventory levels, indicating a market in correction. Prolonged downturns, especially in its key automotive and industrial segments, could critically erode revenue and pressure operating margins.
2. Geopolitical Risks and Supply Chain Disruptions: The global nature of the semiconductor supply chain makes Microchip Technology highly vulnerable to geopolitical tensions, trade disputes (particularly between the U.S. and China), and political instability. These factors can disrupt the flow of critical components, equipment, and raw materials (like rare earth metals predominantly sourced from China), impacting production and market access. Such disruptions increase capital costs for companies like Microchip and necessitate a balance between reshoring incentives and operational efficiency.
3. Intensifying Competition and Rapid Technological Change: Microchip Technology operates in a highly competitive and fast-evolving semiconductor market. It faces intense competition from both established players with greater resources and emerging companies that are constantly developing new and improved products. This competitive pressure, coupled with rapid technological advancements, demands continuous innovation and substantial research and development (R&D) investments to maintain technological leadership, prevent product obsolescence, and avoid price erosion.

RISC-V Adoption: The rapid rise and industry backing of RISC-V, an open-standard instruction set architecture (ISA), poses a significant emerging threat. Unlike proprietary architectures like ARM (which Microchip licenses for some products) or their own PIC and AVR architectures, RISC-V is free to use, customize, and extend. This could lead to a proliferation of lower-cost, highly optimized custom processors from competitors and customers alike. As the RISC-V ecosystem matures with robust development tools, software libraries, and widespread developer support (backed by major players like Google, Intel, NVIDIA, and Qualcomm), it could divert designs away from Microchip's established microcontroller and embedded processor offerings across key markets like IoT, automotive, and industrial. This shift threatens to commoditize the core ISA layer and erode Microchip's competitive advantage derived from its proprietary architectures and extensive ARM licensing.

Hyperscalers and Large Tech Companies Designing Custom Silicon: Major customers of Microchip, including hyperscale cloud providers and large tech companies (e.g., Amazon, Google, Tesla, Apple, Microsoft), are increasingly designing their own highly specialized integrated circuits for internal use. These custom chips range from advanced CPUs/GPUs/AI accelerators to integrated system-on-chips (SoCs) that incorporate embedded control, power management, and interface functions that Microchip typically provides off-the-shelf. This trend reduces the demand for Microchip's standard products in high-volume, strategic applications within these companies. It could force Microchip to shift its business model from selling complete solutions to potentially supplying intellectual property (IP) or highly niche components, impacting market share, revenue streams, and profit margins in critical growth segments.

The addressable markets for Microchip Technology's main products or services are as follows:

• Microcontrollers (MCUs): The global microcontroller market size was estimated at USD 36.22 billion in 2024 and is projected to reach USD 105.32 billion by 2033, growing at a Compound Annual Growth Rate (CAGR) of 12.8% from 2025 to 2033.
• Analog Semiconductors: The global analog semiconductor market size was valued at USD 101.22 billion in 2024 and is predicted to increase from USD 107.23 billion in 2025 to approximately USD 180.24 billion by 2034, expanding at a CAGR of 5.94% from 2025 to 2034.
• Mixed-Signal ICs: The global mixed-signal IC market size was valued at USD 127.5 billion in 2024 and is estimated to reach USD 188.7 billion by 2033, exhibiting a CAGR of 4.5% during 2025-2033.
• Field Programmable Gate Arrays (FPGAs): The global FPGA market was valued at USD 13.63 billion in 2024 and is expected to grow at a CAGR of 10.30% from 2025 to 2034.
• Power Management ICs (PMICs): The global power management IC market size accounted for USD 40.86 billion in 2024 and is expected to exceed USD 79.11 billion by 2034, growing at a CAGR of 6.83% from 2025 to 2034.
• Wireless Connectivity: The global wireless connectivity market size was estimated at USD 103.87 billion in 2024 and is predicted to increase from USD 118.32 billion in 2025 to approximately USD 373.00 billion by 2034, expanding at a CAGR of 13.64% from 2025 to 2034.

Microchip Technology (MCHP) is expected to drive future revenue growth over the next 2-3 years through several key strategies and market trends:

1. Alignment with Megatrends: Microchip is strategically focusing on and aligning its product offerings with significant industry megatrends such as AI/ML, data centers, E-Mobility, the Internet of Things (IoT), sustainability, and networking/connectivity. This strategic alignment is intended to capture sustainable future growth in high-growth areas. The company's expertise in embedded systems, analog and interface technologies, and security solutions positions it well within these markets.
2. Product Innovation and Expansion into High-Growth Markets: The company consistently invests in research and development to introduce new and improved products. Microchip is actively expanding its presence in critical markets like automotive, industrial, and data centers. Notably, the automotive sector significantly increased its revenue contribution from fiscal 2024 to fiscal 2025. Furthermore, the microcontroller (MCU) business has shown strong sequential growth, particularly from 32-bit MCUs, and Microchip has entered the 64-bit embedded microprocessor market to strengthen its position in AI-enabled edge solutions.
3. Strategic Acquisitions: Microchip has a history of utilizing carefully planned acquisitions to expand its product offerings, enhance technological capabilities, and diversify revenue streams. The successful integration of these acquired companies has generated synergies and cost savings, which further supports the company's long-term growth foundation.
4. Strong Design-in Activity and Total System Solution (TSS) Approach: The company boasts a robust design-in pipeline across its various end markets, megatrends, and key customers, which is anticipated to fuel above-market long-term growth. Microchip's comprehensive product portfolio, known as the Total System Solution (TSS), offers a streamlined approach for design engineers, facilitating quicker market entry and ensuring product longevity.
5. Recovery from Inventory Correction and Increased Demand: After navigating a significant inventory correction within the semiconductor industry, Microchip is experiencing a recovery driven by inventory adjustments. Management expects this above-seasonal growth to continue, with strong bookings and extending product lead times indicating tightening supply and increasing demand.

Share Repurchases

• Microchip Technology's Board of Directors authorized a new program on November 8, 2021, to purchase up to $4.0 billion of its common stock. This replaced a previous program to repurchase up to 30 million shares.
• From fiscal year 2019 through the first quarter of fiscal year 2026, the company allocated approximately $2.4 billion to share repurchases.
• These repurchases are expected to be funded through available cash flow from operations, after capital expenditures and dividend payments.

Outbound Investments

• Microchip Technology has pursued strategic acquisitions to expand its market presence and technological capabilities.
• In April 2024, Microchip acquired Neuronix AI, an AI-based computer vision provider, for an undisclosed amount.
• Other recent acquisitions include IconicRF in December 2021 and LegUp Computing and Tekron in October 2020, all for undisclosed amounts.

Capital Expenditures

• Capital expenditures averaged $272 million annually from fiscal years ending March 2021 to 2025. The peak was $486.2 million in March 2023, while the low was $92.6 million in March 2021.
• For fiscal year 2025, capital expenditures are expected to be approximately $135 million.
• Microchip anticipates capital expenditures for fiscal year 2026 to be at or below $100 million, reflecting a pause in most factory expansion actions and reduced planned investments due to a slowing macroeconomic environment.