• Texas Instruments for embedded control and microcontrollers.

• The Intel for the hidden brains of billions of smart, everyday devices.

• Microcontrollers (MCUs): These are small, cost-effective integrated circuits designed to perform specific control functions in embedded systems.
• Analog and Mixed-Signal Products: These integrated circuits process continuous signals and combine analog and digital functionalities for various applications like power management and sensor interfaces.
• Field-Programmable Gate Arrays (FPGAs) & Programmable Logic Devices (PLDs): These are semiconductor devices that can be configured by a customer or a designer after manufacturing, offering flexibility and customization.
• Non-Volatile Memory: This includes various types of memory, such as EEPROM and Flash, that retain data even when power is removed.
• Timing and Connectivity Solutions: These products provide precise clock generation, synchronization, and various wired and wireless communication interfaces for electronic systems.
• Development Tools: Software and hardware platforms that assist engineers in designing, programming, and debugging applications using Microchip's semiconductors.

Microchip Technology (MCHP) is a semiconductor company that sells integrated circuits and embedded control solutions. As such, it sells primarily to **other companies** that manufacture electronic devices, rather than directly to individuals.

Microchip Technology's business model is characterized by a highly diversified customer base, serving approximately 125,000 customers globally. Due to this broad reach and strategic diversification, Microchip Technology typically does not have any single "major customer" (i.e., a customer accounting for 10% or more of its net sales), nor does it publicly disclose the names of individual major customers for competitive reasons. This diversification is a key part of its business strategy to mitigate customer concentration risk.

Instead of specific named companies, Microchip Technology serves a vast array of companies across several major **end markets** or **industries**, which can be considered the categories of companies that are its customers. The top categories of customers (by industry served) include:

• Industrial: This segment includes companies manufacturing equipment for factory automation, robotics, smart home devices, IoT edge devices, medical devices, and other general embedded applications. These companies integrate Microchip's microcontrollers, analog, mixed-signal, and power management solutions into their products.
• Automotive: Customers in the automotive sector design and produce components and systems for vehicles, including infotainment systems, advanced driver-assistance systems (ADAS), electric vehicle (EV) powertrains, body electronics, and safety systems.
• Data Center and Computing: Companies in this category develop and manufacture servers, storage solutions, power supplies, networking equipment for data centers, and other computing infrastructure. Microchip provides solutions like high-performance microcontrollers, Ethernet solutions, and storage infrastructure products.
• Communications: This segment comprises companies involved in developing infrastructure for wireless (e.g., 5G) and wired communications, networking equipment, and various client devices.
• Aerospace and Defense: Customers in this specialized market require highly reliable and secure solutions for applications such as avionics, radar systems, satellite communication, and other defense-related electronics.

Therefore, while Microchip Technology sells primarily to other companies, it does not have a few specific "major customer companies" to list by name. Its customer base is highly fragmented across these diverse industrial categories.

Steve Sanghi, Chief Executive Officer and President
Mr. Sanghi was appointed Chief Executive Officer and President in November 2024, having previously served as Executive Chair since March 2021 and as Chief Executive Officer of Microchip since October 1991. He also served as President from August 1990 to February 2016. Mr. Sanghi was instrumental in Microchip Technology's turnaround in 1990, overseeing its transition from commodity-based products to specialized chips. He currently serves as a Director of Intel Corp and Chairman of Impinj, Inc., and previously served as a Director of Mellanox Technologies Ltd.

J. Eric Bjornholt, Senior Corporate Vice President, Chief Financial Officer and Principal Accounting Officer
Mr. Bjornholt joined Microchip in 1995 and became Chief Financial Officer in January 2009. He also serves as Senior Corporate Vice President, a position he has held since 2019. Prior to his CFO role, he was Microchip's Director of Financial Reporting & Tax and Corporate Secretary from 2003 to 2009. Before joining Microchip, Mr. Bjornholt worked for KPMG LLP.

Richard J. Simoncic, Chief Operating Officer
Mr. Simoncic joined Microchip in 1989 and was appointed Chief Operating Officer in April 2024. He is responsible for Microchip's worldwide operations and leads the company's AI-related efforts. He founded Microchip's internal analog business in 1998, which grew to over $2 billion in annual revenue.

Michael A. Finley, Senior Corporate Vice President, Fab Operations
Mr. Finley joined Microchip in 1990 and serves as Senior Vice President of Fab Operations. He co-leads Microchip's international manufacturing operations, wafer foundry, and OSAT management. Before joining Microchip, he worked in fab operations at Intel Corporation for 10 years.

Joseph R. Krawczyk, II, Senior Corporate Vice President, Worldwide Client Engagement
Mr. Krawczyk joined Microchip in 1995 and serves as Senior Corporate Vice President of Worldwide Client Engagement. He has held various leadership roles within the company, including U.S. Southeast sales manager, ASEAN regional sales manager, and Vice President of Asia Pacific Client Engagement. Prior to Microchip, he spent 14 years at Texas Instruments in engineering, marketing, and management roles.

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Microchip Technology (MCHP) is expected to drive future revenue growth over the next two to three years through a combination of market recovery, strategic expansion into high-growth sectors, and continuous product innovation.

1. Recovery from Semiconductor Downturn and Inventory Correction: The company anticipates a significant rebound following a prolonged industry downcycle and extensive customer destocking. Analysts and company executives point to a "sharp snap back" in demand, with signs of improving bookings and the expected completion of the inventory correction cycle serving as a catalyst for renewed sales growth.
2. Expansion into High-Growth Markets and Megatrends: Microchip is strategically positioning its offerings to capitalize on key megatrends. This includes significant investments and focus on the automotive sector, particularly in Advanced Driver-Assistance Systems (ADAS) with initiatives like the ASA-ML camera development ecosystem, and E-Mobility (electric vehicles). Additionally, the company is targeting the rapidly expanding Artificial Intelligence (AI) and Machine Learning (ML) markets, data centers, and the high-margin aerospace and defense/space electronics segments with specialized radiation-tolerant products.
3. New Product Innovation and Portfolio Expansion: Ongoing innovation and the launch of new products are crucial for Microchip's future revenue. The company is consistently expanding its portfolio with new offerings in areas such as wireless connectivity, AI, and Field-Programmable Gate Arrays (FPGAs), designed to meet evolving market demands and customer needs. This continuous development aims to strengthen its competitive edge and penetrate new application areas.

Share Repurchases

• Microchip Technology's Board of Directors authorized a new $4.0 billion stock repurchase program on November 8, 2021, replacing a previous program.
• Since November 2021 through the September 2024 quarter, the company returned $2.4 billion to shareholders through share repurchases, amounting to approximately 5% of its outstanding shares.
• In fiscal year 2025, approximately 1.0 million shares were repurchased for $90.0 million, with $1.56 billion remaining available under the $4.0 billion authorization.

Share Issuance

• In March 2025, Microchip Technology announced a public offering of $1.35 billion in depositary shares, representing Series A Mandatory Convertible Preferred Stock, primarily aimed at repaying existing debt and covering transaction costs.
• The company issued 29.7 million Depositary Shares, representing approximately 1.5 million shares of Series A Preferred Stock, raising $1.45 billion in fiscal 2025.

Inbound Investments

• In January 2024, the US government committed approximately $162 million to Microchip Technology under the CHIPS and Science Act to bolster domestic computer chip production.
• This funding includes $90 million for upgrading a facility in Colorado Springs, Colorado, and $72 million for expanding a factory in Gresham, Oregon.
• The investment is expected to triple Microchip's production capacity and reduce its reliance on external factories for microcontroller manufacturing.

Outbound Investments

• Microchip Technology plans to invest $300 million over the next four to six years to expand its operations in India, focusing on research and development and manufacturing facilities.

Capital Expenditures

• Capital expenditures for fiscal years ending March 2021 to 2025 averaged $272 million.
• Capital expenditures reached a peak of $486.2 million in March 2023, then decreased to $285.1 million in 2024 and $126 million in 2025.
• Expected capital expenditures are around $135 million to $150 million for fiscal year 2025 and are anticipated to be at or below $100 million for fiscal year 2026, as the company has paused most factory expansion activities to utilize existing capacity.