Microchip Technology Incorporated

The grade, in three tenses

Headline 4.6 out of ten, 9 of 9 metrics filed: past 6.0 out of ten, present 4.0 out of ten, future 4.1 out of ten. The past asks what it actually did, the present what it is doing right now, the future what it is set up to do next.

The nine metrics

• Surviving crises (past): 7.6 out of ten. No warning events in its filings since 2017. 76th percentile among 99 sector filers. A production reading, recomputed from the filings on every data build (read from EDGAR 2026-10-12).
• Track record (past): 3.8 out of ten. +2.1% a year over 9 filed years; profitable in 8 of 9. 38th percentile among 93 sector filers. A production reading, recomputed from the filings on every data build (read from EDGAR 2026-10-12).
• Shareholder treatment (past): 8.2 out of ten. Share count shrank 0.7% a year. 83% of cash flow returned. Insiders: 22 sales, 0 purchases. 81st percentile among 67 sector filers. A production reading, recomputed from the filings on every data build (read from EDGAR 2026-10-12).
• Financial health (present): 4.4 out of ten. ROE 4%: 4¢ of profit per shareholder dollar. Leverage 55%: owes 55¢ per asset dollar. 44th percentile among 95 sector filers. A production reading, recomputed from the filings on every data build (read from EDGAR 2026-10-12).
• Industry position (present): 5.0 out of ten. bottom 50% of 97 in its family; net margin 4.9%. 50th percentile among 97 sector filers. A production reading, recomputed from the filings on every data build (read from EDGAR 2026-10-12).
• Leadership (present): 1.7 out of ten. bottom 17% of 66 in its family for leadership; chief executive since 2025. 17th percentile among 66 sector filers. A production reading, recomputed from the filings on every data build (read from EDGAR 2026-10-09).
• Room to expand (future): 5.5 out of ten. top 45% of 94 in its family for room to expand. 55th percentile among 94 sector filers. A production reading, recomputed from the filings on every data build (read from EDGAR 2026-10-12).
• Growth drivers (future): 2.1 out of ten. bottom 21% of 93 in its family for growth drivers. 21st percentile among 93 sector filers. A production reading, recomputed from the filings on every data build (read from EDGAR 2026-10-12).
• Expectations vs reality (future): 4.1 out of ten. bottom 41% of 88 in its family for expectations against reality. 41st percentile among 88 sector filers. A production reading, recomputed from the filings on every data build (read from EDGAR 2026-10-12).

The filing record

Newest annual report: Form 10-K filed 2026-05-21 for the period ended 2026-03-31 (on EDGAR). Newest quarterly report: Form 10-Q filed 2026-08-06 for the period ended 2026-06-30 (on EDGAR). Newest results release: Form 8-K filed 2026-08-06 (on EDGAR). Newest filing: Form 4, 2026-10-05. Filings on record since 1994. Read from EDGAR 2026-10-12.

How the company works

Read from its Form 10-K filed 2026-05-21.

The people

Steve Sanghi runs Microchip and chairs its board. He was chief executive from October 1991 to March 2021 and has chaired the board since October 1993, serving as executive chair in the years he was not chief executive; he was president from August 1990 to February 2016 and has been a director since August 1990. The board made him chief executive and president again on an interim basis on November 18, 2024 and permanently on July 2, 2025. He also sits on the board of Impinj, where he became chair in June 2022, and on the board of Intel, since December 2024. On the record this site holds, Ganesh Moorthy, who filed as president and chief executive, made his last insider filing in November 2024. [1, 2, 3, 4, 5]

Four other executive officers are named, and all have spent most of their working lives at the company. Richard J. Simoncic has been chief operating officer since April 1, 2024; he joined in 1990 and worked in design, yield engineering and quality systems before running the analog power and interface business. J. Eric Bjornholt has been chief financial officer since January 2009 and joined in 1995. Mathew B. Bunker, who runs operations, has been employed since February 1993 and a vice president since May 2007. Joseph R. Krawczyk II, who runs worldwide client engagement, joined in September 1995. The company says its culture is a key reason so many employees have long tenure and have grown from individual contributors into senior leadership. Of the nineteen people on this site's insider record, twelve are still filing, among them Stephanus Duvenhage, who first filed in September 2026 as senior corporate vice president of the analog business unit. [6, 7, 8, 9, 10, 5]

The board has seven members: Ellen L. Barker, Rick Cassidy, Matthew W. Chapman, Mitch Little, Victor Peng, Karen M. Rapp and Steve Sanghi. All of them except Sanghi are independent, and because the chair is also the chief executive the company's guidelines require a lead independent director: Matthew W. Chapman, a director since May 1997 and the audit committee's chair, was appointed to that role in November 2024. Three of the newer members come from elsewhere in the industry: Rick Cassidy, who was chairman of TSMC Arizona and a senior vice president of TSMC until July 1, 2025; Victor Peng, president of Advanced Micro Devices from 2022 to 2024 and chief executive of Xilinx from 2018 to 2022; and Mitch Little, who retired from Microchip in May 2022, having run its worldwide client engagement, and was elected to the board on June 1, 2026. [11, 12, 13, 14, 15, 16, 17, 18]

The workforce is about 17,900 people, and because Microchip builds as well as designs, much of it is in factories: wafer fabrication at Gresham, Oregon and Colorado Springs, Colorado, assembly and test in Thailand and the Philippines, and research centers in Bengaluru, Hyderabad and Chennai in India. That headcount has been cut. In the fourth quarter of fiscal 2025 the company began a global reduction in force, which it completed in the first quarter of fiscal 2026, with headcount reductions at its manufacturing plants in Oregon, Colorado Springs and the Philippines. In the proxy statement the chief executive describes it as cutting the workforce by approximately 10%, the first broad-based layoff since 2002. [19, 20, 21, 22, 23, 24, 25, 26]

How it operates

Microchip develops, manufactures and sells embedded control chips: the parts that run inside a product rather than being the product, in cars, aerospace and defense equipment, communications gear, consumer appliances, data centers and industrial machines. Its largest product line is the mixed-signal microcontroller, which the filing describes as a self-contained computer-on-a-chip, a processor with program memory, data memory and analog and digital inputs and outputs in one part, sold in 8-bit through 32-bit versions; in July 2024 it went further up, entering the 64-bit microprocessor market with the PIC64 family of RISC-V processors for industrial, aerospace, defense and space work. Around the microcontroller it sells analog chips (power management, high voltage, thermal management, discrete diodes and MOSFETs, RF, gate drivers, timing, USB, ethernet and wireless parts), FPGAs, which are programmable chips a customer can reprogram at any time, memory chips such as EEPROMs and serial flash, and the development tools engineers design with. It is also a supplier of storage controllers, memory controllers and switches for AI data centers, sold under the Adaptec and Microsemi brands. [27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37]

It sells to approximately 101,000 customers, through its own sales people and through distributors, and no single buyer is large. In fiscal 2026 distributors carried 47% of net sales and directly served customers 53%. Only one name crosses 10%: Arrow Electronics, the largest distributor, at 12% of net sales against 10% the year before. The ten largest direct customers together came to about 11% of revenue, and two of those ten are contract manufacturers that build for many companies. The other side of the book is licensees, who pay fees and royalties for SuperFlash embedded flash and other technologies. A significant portion of sales, the filing says, goes to government agencies or to customers that sell to them, which brings federal contracting rules and the uncertainties of government spending with it. [38, 39, 40, 41, 42, 43]

Owning factories is deliberate. The company says a substantial part of its manufacturing is its own, which keeps it among the lowest cost producers in embedded control and lets it keep part of the manufacturing margin. In fiscal 2026 about 35% of sales came from products made in its own wafer fabs in the United States and about 65% from outside foundries, which take all of its 300mm wafer work and some 200mm and 150mm specialty processes. Its own fabs run older, smaller wafers: Fab 4 in Gresham, Oregon makes 8-inch wafers at 0.11 to 0.5 microns, and Fab 5 in Colorado Springs makes discrete and specialty parts on 6-inch wafers. Fab 2 in Tempe, Arizona closed in May 2025 and is held for sale. About 67% of assembly and 69% of testing happen in its own plants in Thailand and the Philippines, with dedicated aerospace and defense assembly and test sites in Germany, France, Ireland, the United Kingdom, the Philippines, Thailand and the United States. The only foundry the filing names is SMIC, which makes some of its products. [44, 45, 46, 47, 48, 22, 23, 24, 49, 50]

By where the customer sits, Asia brought 2,352.9 million dollars in fiscal 2026, 49.9% of net sales; the Americas 1,391.3 million, 29.5%; and Europe 968.9 million, 20.6%. All three grew. About 75% of net sales went to foreign customers, 18% of them into China and 15% into Taiwan, and substantially all foreign sales are billed in US dollars. Where a chip is billed is not where it was chosen: the company says its sales force in the Americas and Europe supports a significant part of the design work for products that are ultimately shipped to Asia. [51, 52, 53]

How the cash actually arrives is worth knowing. Some customers pay up front for assured supply: at March 31, 2026 the company held 461.2 million dollars of deferred revenue, of which 365.7 million was cash collected under long-term supply agreements that typically run three to five years. If the customer meets the minimum purchase commitments, the deposit goes back; if not, the company may keep all or part of it and book it as revenue. Distributors are looser: they get price concessions and stock rotation rights, there are generally no long-term agreements with them, and either side may end the relationship with little or no advance notice. [54, 55, 56, 41]

The specifics

Microchip was incorporated in Delaware in 1989, created its values framework before going public in 1993, and is run from Chandler, Arizona; it has filed with the SEC since 1994. It claims over 35 years of technology leadership. Much of today's range arrived by purchase rather than invention: the subsidiaries that guarantee its bonds include Atmel Corporation, Silicon Storage Technology and Microsemi Corporation, its data center storage controllers still carry the Adaptec and Microsemi brands, and it says prior acquisition activity brought it several smaller wafer fabrication plants running older technologies suited to the discrete products they make. Those small sites are scattered, among them wafer fabrication at Lawrence, Massachusetts and manufacturing at Mount Holly Springs, Pennsylvania and Garden Grove, California. [57, 58, 59, 37, 60, 25, 27, 61, 62]

What it owns and defends: a portfolio of patents expiring between 2026 and 2045, though the filing says its continued success depends primarily on the skills of its people and on commercializing new products quickly rather than on any one patent. Its SuperFlash embedded flash is licensed to foundries, integrated device manufacturers and design partners worldwide for use in their own chips, which is a business in itself. It says some competitors have copied, cloned, pirated or reverse engineered its product lines in countries such as China and Taiwan. Two quieter advantages sit in the product: the company believes familiarity with its development tools is an important factor in designers choosing its chips, and because its microcontrollers are proprietary their average selling prices have stayed relatively stable, where semiconductor prices usually fall over a product's life. [63, 38, 64, 36, 65]

The annual report names no competitor. It says the industry is intensely competitive, marked by price erosion and rapid technological change, and that it competes with major domestic and international semiconductor companies, some with greater market recognition and deeper resources. Politics reaches the business at several points. Some of its products are made at SMIC, and from December 2027 a section of the National Defense Authorization Act for fiscal year 2023 bars US government agencies from buying semiconductors made by SMIC, YMTC or CXMT. On October 8, 2025 certain subsidiaries of Arrow Electronics, its largest distributor, were placed on the US Commerce Department's Entity List, which stopped shipments to them; nine days later Commerce authorized them again, and the filing reports no material impact. Among its listed risks is that a change in relations between China and Taiwan could disrupt its Taiwan-based outside foundries. [64, 50, 66, 67, 68]

The two years before this one explain the company's present shape. Revenue fell 42.3% to 4.4 billion dollars in fiscal 2025 and net income all but vanished. In March 2025 the company put in a business recovery plan of restructuring actions to cut costs, resize manufacturing and reduce headcount: Fab 2 in Tempe closed, about 10% of employees went, and it cancelled or modified long-term supply agreements with certain wafer foundries. Special charges came to 39.7 million dollars in fiscal 2026 after 79.2 million in fiscal 2025, and expansion at Fab 4 and Fab 5 stays paused through fiscal 2027. It raised 1.45 billion dollars in March 2025 by issuing Series A preferred stock, and its lenders loosened the leverage covenant into a relief period ending no later than December 31, 2026; debt principal was 5.54 billion dollars at March 31, 2026. Two other overhangs: a Malaysian tax assessment that could reach MYR 1.9 billion, about 480.2 million dollars, if upheld, and an August 2024 intrusion that disrupted servers and left some plants running below normal for a time. [69, 70, 71, 72, 73, 74, 75, 26, 22, 23, 76]

What drives growth, line by line

Net sales were 4.7 billion dollars in fiscal 2026, up 7.1% after a fall of 42.3% the year before. The company's account of the swing is inventory rather than end demand: customers had been holding too much of it, and as they worked it down demand returned, helped by new design wins entering production. Sales rose in every product line and every geography. The channel tells the same story: distributors held 26 days of Microchip inventory at March 31, 2026 against 33 days a year earlier, and the filing says distributor holding patterns had hurt net sales in fiscal 2025 and the first half of fiscal 2026. [76, 75, 77, 78]

Semiconductor Products. The chips themselves brought 4.5 billion dollars, 96.5% of revenue, up 6.5% on the year. Within that the company reports three product lines. Mixed-signal microcontrollers, at 2,355.4 million dollars, were 50.0% of net sales and grew 4.7%, which the filing credits to customers having reduced excess inventory and to new design wins entering production. Analog, at 1,329.0 million dollars and 28.2% of net sales, grew fastest of the three at 14.9%, for the same two reasons. [79, 80, 65, 81]

The third product line, which the company simply calls Other, was 1,028.7 million dollars, 21.8% of net sales, up 3.4%. It is a mixture: FPGAs, royalties from licensing SuperFlash and other technologies, outright sales of intellectual property, engineering service fees, memory, timing systems, foundry and assembly and test work done for other companies, legacy application specific chips and aerospace products. The filing puts its growth mainly down to sales of certain intellectual property rights, and after that to customers buying more once they had worked through high inventory balances. [80, 82, 83]

Technology Licensing. The smaller reported segment brought 163.8 million dollars, 3.5% of revenue, up 24.9%. It is the licensing business: fees and royalties from foundries, integrated device manufacturers and design partners that build SuperFlash embedded flash and other Microchip technologies into their own chips, plus engineering fees and sales of intellectual property. In the segment table it carries no cost of sales at all, so the 163.8 million dollars is also its gross profit, next to 2,557.3 million from the semiconductor segment; the year's change in licensing revenue added 32.7 million dollars to gross margin. [79, 38, 84, 85]

What comes next, in the company's own words: it says it is now in a significant revenue growth mode and expects inventory to keep falling as it manages its own factories and its foundries, while warning of uncertainty in the wider economy, geopolitical tension, the risk of a recession and the effects of trade policies including tariffs. Spending on equipment and facilities over the next 12 months is expected to be about 100.0 million dollars, and expansion at Fab 4 and Fab 5 remains paused through fiscal 2027. In the proxy statement the chief executive says data center and aerospace and defense work led growth in the second half of fiscal 2026 and that nearly all end markets are now taking part in the recovery. [86, 87, 22, 23, 88]

What the desk infers (inferred, not filed)

• Microchip's revenue is concentrated in its distributors, not in its end customers: one distributor, Arrow Electronics, accounts for more of net sales than the ten largest direct customers put together. Because: Distributors carried 47% of net sales in fiscal 2026 and directly served customers 53%. [40] Arrow Electronics, the largest distributor, made up 12% of net sales in fiscal 2026 against 10% the year before, and no other distributor or direct customer passed 10%. [41] The ten largest direct customers together came to about 11% of total revenue in fiscal 2026, out of approximately 101,000 customers. [42] Arrow also accounted for 14% of the money owed to the company at March 31, 2026, and no other customer passed 10%. [89] There are generally no long-term agreements with distributors, and either side may end the relationship with little or no advance notice. [41] Confidence 80 of 100. Wrong if: A filing in which the ten largest direct customers account for a larger share of net sales than Arrow Electronics does, or in which Arrow drops below the combined direct-customer figure.
• The company has more factory capacity than its sales currently need, so its manufacturing profit now turns on filling the plants it already owns rather than on building new ones. Because: It closed Fab 2 because of high inventory levels and ample manufacturing capacity at its other wafer fabrication facilities. [46] Expansion and capital equipment plans at Fab 4 and at Fab 5 are paused through fiscal 2027, and the company says both have ample clean room space for expansion. [22, 23, 90] Unabsorbed capacity charges, which it books when factories run below normal levels, were 27.8 million dollars worse in fiscal 2026 than in fiscal 2025. [91] Capital spending was 91.1 million dollars in fiscal 2026 against 486.2 million in fiscal 2023, and the next 12 months are expected to bring about 100.0 million. [76, 87] About 65% of sales still come from products made at outside foundries, so there is work that could be brought inside before new capacity is needed. [45] Confidence 75 of 100. Wrong if: A filing that restarts the Fab 4 or Fab 5 expansion for want of capacity, or capital spending returning to its fiscal 2023 level while outside foundries still make most of its products.
• The most advanced chips Microchip sells are not made in its own fabs at all: its leading-edge parts come from outside foundries, most likely Taiwanese ones, while its own plants run older, smaller wafers. Because: Its own fabs run 8-inch wafers at 0.11 to 0.5 microns in Gresham, Oregon and 6-inch wafers for discrete and specialty parts in Colorado Springs. [22, 23] All of its 300mm wafer requirements and some 200mm and 150mm specialty processes go to third-party foundries, which accounted for about 65% of sales in fiscal 2026. [45] In the proxy statement the company says it was first to market with a PCIe Gen 6 switch built on 3-nanometer technology, a process nothing in its own plants can run. [92] Among its listed risks is that a change in relations between China and Taiwan could disrupt its Taiwan-based third-party wafer foundries and subcontractors. [68] The only foundry named anywhere in the annual report is SMIC, and it is named because a US law bars government agencies from buying parts made there from December 2027. [50, 66] Confidence 70 of 100. Wrong if: A filing or a foundry's own disclosure naming a maker outside Taiwan for its most advanced parts, such as the 3-nanometer switch, or showing its own fabs producing 300mm wafers.

Sources

1. Microchip Technology Incorporated, Form 10-K filed 2026-05-21: “Mr. Sanghi was appointed Chief Executive Officer and President on an interim basis on November 18, 2024 and appointed Chief Executive Officer and President on a permanent basis on July 2, 2025, while continuing to serve as Chair of the Board.”
2. Microchip Technology Incorporated, Form 10-K filed 2026-05-21: “He previously served as Chief Executive Officer from October 1991 to March 2021 and as Chair of the Board from October 1993 to the present, including service as Executive Chair during such time that he was not serving as Chief Executive Officer.”
3. Microchip Technology Incorporated, Form 10-K filed 2026-05-21: “He served as President from August 1990 to February 2016 and has served as a director since August 1990.”
4. Microchip Technology Incorporated, Form 10-K filed 2026-05-21: “Mr. Sanghi has served on the Board of Directors of Impinj, Inc. since March 2021 and became Board Chair in June 2022. Mr. Sanghi has served on the Board of Directors of Intel Corporation since December 2024.”
5. The record on this page: the officers and directors who file Forms 3, 4 and 5 (the SEC's insider data sets)
6. Microchip Technology Incorporated, Form 10-K filed 2026-05-21: “Mr. Simoncic was promoted to Chief Operating Officer on April 1, 2024. He previously served as Executive Vice President Analog Power and Interface Business Unit from April 2023 to April 2024; as Senior Vice President, Analog Power and Interface Business Units from February 2019 to April 2023; and as Vice President, Analog Power and Interface Business Units from September 1999 to February 2019. From October 1995 to September 1999, he served as Vice President in multiple operational and engineering roles. Since joining Microchip in 1990, Mr. Simoncic has held various roles in Design, Device/Yield Engineering and Quality Systems.”
7. Microchip Technology Incorporated, Form 10-K filed 2026-05-21: “He has served as Vice President of Finance since 2008 and as Chief Financial Officer since January 2009. He has served in various financial management capacities since he joined Microchip in 1995.”
8. Microchip Technology Incorporated, Form 10-K filed 2026-05-21: “He has served as Vice President of Backend Operations and other backend manufacturing divisions since May 2007. He has been employed by Microchip since February 1993 and has served as a Vice President in various roles since May 2007.”
9. Microchip Technology Incorporated, Form 10-K filed 2026-05-21: “He has served as Vice President of WW Client Engagement since May 2021. He served as Vice President of Asia Client Engagement from 2006 to 2020. Since joining Microchip in September 1995, Mr. Krawczyk held various marketing and geographical sales roles.”
10. Microchip Technology Incorporated, Form 10-K filed 2026-05-21: “Our culture is important to our employees, and is a key reason why we have a significant number of employees with long tenure with Microchip that have grown from individual contributors in the early stages of their careers into senior leadership positions today.”
11. Microchip Technology Incorporated, Form DEF 14A filed 2026-07-06: “The Board currently consists of seven directors: Ellen L. Barker, Rick Cassidy, Matthew W. Chapman, Mitch Little, Victor Peng, Karen M. Rapp and Steve Sanghi.”
12. Microchip Technology Incorporated, Form DEF 14A filed 2026-07-06: “Our Board has determined that each of the following nominees for director is an independent director as defined by applicable SEC rules and Nasdaq listing standards: Ms. Barker, Mr. Cassidy, Mr. Chapman, Mr. Little, Mr. Peng and Ms. Rapp.”
13. Microchip Technology Incorporated, Form DEF 14A filed 2026-07-06: “The Board appointed Matthew W. Chapman to serve as lead independent director in November 2024. The appointment of a lead independent director is required under our Corporate Governance Guidelines in the event the Chair of the Board is not an independent director.”
14. Microchip Technology Incorporated, Form DEF 14A filed 2026-07-06: “1997 to Present - Board of Directors, Microchip Technology Incorporated; Audit Committee Chair since 1997; Lead Independent Director since 2024 •2007 to 2018 - CEO, Northwest Evaluation Association •2002 to 2006 - Chair and CEO, Centrisoft Corporation •1987 to 2000 - CEO, Concentrex Incorporated Membership on Other Public Boards: •1987 to 2000 - Concentrex Incorporated, Board Chair Education: •J.D. from the University of Oregon School of Law •B.S. in Economics from the University of Portland Matthew W. Chapman Lead Independent Director Age: 75 years old Director Since: May 1997”
15. Microchip Technology Incorporated, Form DEF 14A filed 2026-07-06: “Mr. Cassidy served as Chairman and Director of TSMC Arizona and as Senior Vice President, Corporate Strategy Office of TSMC Ltd. until July 1, 2025, after which he transitioned to an executive advisory role with TSMC.”
16. Microchip Technology Incorporated, Form DEF 14A filed 2026-07-06: “2022 to 2024 - President, Advanced Micro Devices, Inc. •2018 to 2022 - Xilinx Inc., CEO Membership on Other Public Boards: •2026 to Present - Rambus Inc., Board Member •2019 to Present - KLA Corporation, Board Member •2017 to 2022 - Xilinx Inc., Board Member Education: •M.Eng. in Electrical Engineering from Cornell University •B.S. in Electrical Engineering from Rensselaer Polytechnic Institute Victor Peng Independent Age: 66 Director Since: February 2025”
17. Microchip Technology Incorporated, Form DEF 14A filed 2026-07-06: “Mr. Little retired from Microchip effective May 31, 2022, and since founded CUSP Advisory Group and has authored two books”
18. Microchip Technology Incorporated, Form DEF 14A filed 2026-07-06: “Mr. Little was elected to our Board on June 1, 2026.”
19. Microchip Technology Incorporated, Form 10-K filed 2026-05-21: “We invest in our highly-skilled global workforce of approximately 17,900 people in accordance with our Guiding Value: employees are our greatest strength.”
20. Microchip Technology Incorporated, Form 10-K filed 2026-05-21: “In the fourth quarter of fiscal 2025, we implemented a global reduction of our work force, which we completed in the first quarter of fiscal 2026.”
21. Microchip Technology Incorporated, Form DEF 14A filed 2026-07-06: “It required difficult decisions — closing our Tempe Fab 2 facility, reducing our workforce by approximately 10% in our first broad-based layoff since 2002, and restructuring our balance sheet to protect our investment-grade debt rating.”
22. Microchip Technology Incorporated, Form 10-K filed 2026-05-21: “Fab 4, located in Gresham, Oregon, currently produces 8-inch wafers using predominantly 0.11 microns to 0.5 microns manufacturing processes. While select investments are still being made, in the fourth quarter of fiscal 2024, we paused our expansion and capital equipment investment plan at Fab 4 through fiscal 2027.”
23. Microchip Technology Incorporated, Form 10-K filed 2026-05-21: “Fab 5, located in Colorado Springs, Colorado, currently manufactures discrete and specialty products in addition to a lower volume of a diversified set of standard products on 6-inch wafers. In February 2023, we announced our plan to expand our silicon carbide (SiC) and silicon production capacity, including the production of 8-inch wafers, at our Fab 5 facility. While select investments are still being made to reorganize our manufacturing capacity, in the fourth quarter of fiscal 2024, we paused our expansion activity through fiscal 2027.”
24. Microchip Technology Incorporated, Form 10-K filed 2026-05-21: “We operate assembly and test facilities in Thailand and the Philippines. Approximately 67% of our assembly requirements were performed in our internal assembly facilities during each of fiscal 2026 and fiscal 2025. During fiscal 2026, approximately 69% of our test requirements were performed in our internal facilities, compared to approximately 67% during fiscal 2025.”
25. Microchip Technology Incorporated, Form 10-K filed 2026-05-21: “Bengaluru, India 258,400 R&D center, sales and marketing support and administrative offices Bengaluru, India 172,500 R&D center Hyderabad, India 167,600 R&D center Lawrence, Massachusetts 160,000 Manufacturing (wafer fabrication) and administrative offices Rousset, France 144,500 Test, R&D and administrative offices Mount Holly Springs, Pennsylvania 100,000 Manufacturing, R&D and administrative offices Garden Grove, California 98,100 Manufacturing, R&D and administrative offices San Jose, California 98,000 R&D and administrative offices Chennai, India 88,200 R&D center”
26. Microchip Technology Incorporated, Form 10-K filed 2026-05-21: “In the third and fourth quarters of fiscal 2025, the Company announced restructuring and cost reduction measures, including closure of its Tempe, Arizona wafer fabrication facility, and a reduction in headcount at its manufacturing facilities in Oregon, Colorado Springs and the Philippines. In addition, the Company announced 10% reductions in employee headcount across the Company to decrease its operating expenses, and cancellation or modification of its LTSAs with certain wafer foundries.”
27. Microchip Technology Incorporated, Form 10-K filed 2026-05-21: “We develop, manufacture and sell smart, connected and secure embedded control solutions used by our customers for a wide variety of applications. With over 35 years of technology leadership, our broad product portfolio offers a Total System Solution for our customers that can provide a large portion of the silicon requirements in their applications.”
28. Microchip Technology Incorporated, Form 10-K filed 2026-05-21: “Our synergistic product portfolio empowers disruptive growth trends, including AI/ML, data centers, edge computing and IoT, E-mobility, networking and connectivity, and sustainability in key end markets such as automotive, aerospace and defense, communications, consumer appliances, data centers and computing, and industrial.”
29. Microchip Technology Incorporated, Form 10-K filed 2026-05-21: “Our mixed-signal microcontroller product line represents the largest component of our total net sales.”
30. Microchip Technology Incorporated, Form 10-K filed 2026-05-21: “A mixed-signal microcontroller is a self-contained computer-on-a-chip consisting of a central processing unit, often with on-board non-volatile program memory for program storage, random access memory for data storage and various analog and digital input/output peripheral capabilities.”
31. Microchip Technology Incorporated, Form 10-K filed 2026-05-21: “In July 2024, we entered the 64-bit mixed-signal microprocessor market with our PIC64 family of high-performance multi-core processors. Our PIC64 family consists of 64-bit RISC-V microprocessors designed for high-performance, mission-critical applications across industrial, aerospace, defense and space sectors.”
32. Microchip Technology Incorporated, Form 10-K filed 2026-05-21: “Mixed-signal microcontrollers are primarily available in 8-bit through 32-bit architectures. 8-bit mixed-signal microcontrollers remain very cost-effective and easy to use for a wide range of high-volume embedded control applications and, as a result, continue to represent a significant portion of the overall mixed-signal microcontroller market.”
33. Microchip Technology Incorporated, Form 10-K filed 2026-05-21: “Our analog product line consists of several families including power management, linear, mixed-signal, high voltage, thermal management, discrete diodes and MOSFETs, RF, gate drivers, safety, security, timing, application specific standard products (ASSPs), USB, ethernet, wireless and other interface products.”
34. Microchip Technology Incorporated, Form 10-K filed 2026-05-21: “FPGAs are programmable integrated circuits that are used to implement complex logic functions and can be re-programmed at any time, allowing for multiple implementations and revisions during or after the customer system is manufactured.”
35. Microchip Technology Incorporated, Form 10-K filed 2026-05-21: “Our memory products consist of EEPROMs, Serial Flash memories, Parallel Flash memories, Serial SRAM memories and EERAMs.”
36. Microchip Technology Incorporated, Form 10-K filed 2026-05-21: “We believe that familiarity with and adoption of development tools from Microchip as well as from third-party development tool partners by an increasing number of product designers will be an important factor in the future selection of our embedded control products.”
37. Microchip Technology Incorporated, Form 10-K filed 2026-05-21: “Our storage controller portfolio includes Microchip Adaptec® and Microsemi® branded storage controllers, SAS/SATA expanders, and accelerators that enable reliable SAS/SATA and NVMe® storage connectivity, data protection, and workload offload.”
38. Microchip Technology Incorporated, Form 10-K filed 2026-05-21: “Our technology licensing business generates license fees and royalties associated with technology licenses for the use of our SuperFlash® embedded flash and other technologies. We also generate fees for engineering services related to these technologies. We license our Non-Volatile Memory technologies to foundries, integrated device manufacturers and design partners throughout the world for use in the manufacture of their advanced mixed-signal microcontroller products, gate array, RF, analog and neuromorphic compute products that require embedded non-volatile memory.”
39. Microchip Technology Incorporated, Form 10-K filed 2026-05-21: “We market and sell our products worldwide primarily through a network of direct sales personnel and distributors to approximately 101,000 unique customers.”
40. Microchip Technology Incorporated, Form 10-K filed 2026-05-21: “In fiscal 2026, we derived 47% of our net sales through distributors compared to 53% of our net sales from customers serviced directly by us.”
41. Microchip Technology Incorporated, Form 10-K filed 2026-05-21: “With the exception of Arrow Electronics, our largest distributor, which made up 12% and 10% of our net sales, in fiscal 2026 and in fiscal 2025, respectively, no distributor or direct customer accounted for more than 10% of our net sales. Generally, we do not have long-term agreements with our distributors and we, or our distributors, may terminate our relationships with each other with little or no advance notice, with the exception of orders otherwise designated as non-cancellable.”
42. Microchip Technology Incorporated, Form 10-K filed 2026-05-21: “While we had approximately 101,000 customers, and our ten largest direct customers accounted for approximately 11% of our total revenue in fiscal 2026, and two of our top ten direct customers are contract manufacturers that perform manufacturing services for many customers, cancellation of customer contracts could have an adverse impact on our revenue and profits.”
43. Microchip Technology Incorporated, Form 10-K filed 2026-05-21: “A significant portion of our sales are from or are derived from government agencies or customers who sell to U.S. or foreign government agencies. Such sales are subject to federal contracting regulations as well as uncertainties regarding governmental spending levels, spending priorities, regulatory and policy changes.”
44. Microchip Technology Incorporated, Form 10-K filed 2026-05-21: “In fiscal 2026, approximately 35% of our sales came from products produced at our own wafer fabrication facilities that are located in the U.S. There are benefits to having our own U.S. wafer fabrication facilities such as increased IP protection and security, increased supply chain resilience and the ability to manage production costs.”
45. Microchip Technology Incorporated, Form 10-K filed 2026-05-21: “We augment our internal manufacturing capabilities by outsourcing a significant portion of our wafer production requirements to third-party wafer foundries, including all of our 300mm wafer requirements and some of our 200mm and 150mm specialty process technologies. In fiscal 2026, approximately 65% of our sales came from products that were produced at outside wafer foundries.”
46. Microchip Technology Incorporated, Form 10-K filed 2026-05-21: “In December 2024, we announced our decision to close our Fab 2 manufacturing operations and the closure was completed in May 2025. The decision to close Fab 2 was driven by high inventory levels and ample manufacturing capacity at our other wafer fabrication facilities.”
47. Microchip Technology Incorporated, Form 10-K filed 2026-05-21: “Our Fab 2 wafer fabrication facility located in Tempe, Arizona is classified as held for sale as of March 31, 2026.”
48. Microchip Technology Incorporated, Form 10-K filed 2026-05-21: “The ownership of a substantial portion of our manufacturing resources is an important component of our business strategy, enabling us to maintain a high level of manufacturing control, resulting in us being one of the lowest cost producers in the embedded control industry.”
49. Microchip Technology Incorporated, Form 10-K filed 2026-05-21: “In addition, we have specialized assembly and test facilities dedicated to our aerospace and defense products in Germany, France, Ireland, the United Kingdom, the Philippines, Thailand, and the United States.”
50. Microchip Technology Incorporated, Form 10-K filed 2026-05-21: “prohibits U.S. government agencies from buying semiconductor products or services manufactured by SMIC, YMTC, CXMT and any other entity that the Secretary of Defense or the Secretary of Commerce determine is owned, controlled, or connected to the government of a foreign country of concern (Prohibited Companies). Some of our products are manufactured at SMIC, and some of our suppliers buy products manufactured at YMTC.”
51. Microchip Technology Incorporated, Form 10-K filed 2026-05-21: “Americas $ 1,391.3 29.5 $ 1,325.7 30.2 Europe 968.9 20.6 878.1 19.9 Asia 2,352.9 49.9 2,197.8 49.9 Total net sales $ 4,713.1 100.0 $ 4,401.6 100.0”
52. Microchip Technology Incorporated, Form 10-K filed 2026-05-21: “Net sales increased in all geographies in fiscal 2026 compared to fiscal 2025 primarily due to increased demand after customers reduced excess inventory levels as well as new customer design win activity entering production. Substantially all of our foreign sales are U.S. dollar denominated. Our sales force in the Americas and Europe supports a significant portion of the design activity for products which are ultimately shipped to Asia.”
53. Microchip Technology Incorporated, Form 10-K filed 2026-05-21: “During fiscal 2026, approximately 75% of our net sales were made to foreign customers, including 18% in China and 15% in Taiwan.”
54. Microchip Technology Incorporated, Form 10-K filed 2026-05-21: “Under these LTSAs, the Company receives an upfront deposit and minimum purchase commitments from the customer in exchange for assured supply over the contract period, which typically ranges from three years to five years. If the customer meets the minimum purchase commitments defined in the contract, the Company returns the deposit to the customer.”
55. Microchip Technology Incorporated, Form 10-K filed 2026-05-21: “Of the $461.2 million of deferred revenue as of March 31, 2026, $365.7 million is cash collected from customers under LTSAs”
56. Microchip Technology Incorporated, Form 10-K filed 2026-05-21: “As is customary in the semiconductor industry, we offer price concessions and stock rotation rights to many of our distributors.”
57. Microchip Technology Incorporated, Form 10-K filed 2026-05-21: “Microchip Technology Incorporated was incorporated in Delaware in 1989. Our executive offices are located at 2355 West Chandler Boulevard, Chandler, Arizona 85224-6199”
58. Microchip Technology Incorporated, Form 10-K filed 2026-05-21: “Before Microchip went public in 1993, Microchip created a cultural framework to unite its employees through shared workplace values, and to guide employees’ strategies, decisions, actions and job performance.”
59. Microchip Technology Incorporated, Form 10-K filed 2026-05-21: “Atmel Corporation, Microchip Holding Corporation, Microchip Technology LLC, Silicon Storage Technology, Inc., Microsemi Corporation, and Microchip Storage Solutions LLC (such subsidiaries collectively, the Subsidiary Obligors).”
60. Microchip Technology Incorporated, Form 10-K filed 2026-05-21: “As a result of our prior acquisition activity, we acquired several smaller wafer fabrication facilities, which utilize older technologies that are appropriate for the discrete products they manufacture.”
61. The record on this page: the filing record (the EDGAR submissions feed)
62. The record on this page: the filing record (the EDGAR submissions feed)
63. Microchip Technology Incorporated, Form 10-K filed 2026-05-21: “We maintain a portfolio of U.S. and foreign patents, expiring on various dates from 2026 through 2045. We also have numerous additional U.S. and foreign patent applications pending. We do not expect that the expiration of any particular patent will have a material impact on our business. While our intention is to continue to patent our technology and manufacturing processes, we believe that our continued success depends primarily on the technological skills and innovative capabilities of our personnel and our ability to rapidly commercialize new and enhanced products.”
64. Microchip Technology Incorporated, Form 10-K filed 2026-05-21: “The semiconductor industry is intensely competitive and has historically been characterized by price erosion and rapid technological change. We compete with major domestic and international semiconductor companies, some of which have greater market recognition and greater financial, technical, marketing, distribution and other resources than we have with which to pursue engineering, manufacturing, marketing and distribution of their products. We also compete with a number of companies that we believe have copied, cloned, pirated or reverse engineered our proprietary product lines in such countries as China and Taiwan.”
65. Microchip Technology Incorporated, Form 10-K filed 2026-05-21: “Net sales of our mixed-signal microcontroller products increased approximately 4.7% in fiscal 2026 compared to fiscal 2025. The increase in net sales was primarily due to increased demand after customers reduced excess inventory levels as well as new customer design win activity entering production. Historically, average selling prices in the semiconductor industry decrease over the life of any particular product. However, the overall average selling prices of our mixed-signal microcontroller products have remained relatively stable in recent periods due to the proprietary nature of these products.”
66. Microchip Technology Incorporated, Form 10-K filed 2026-05-21: “Some of our products are manufactured at SMIC, and some of our suppliers buy products manufactured at YMTC. If we are unable to alternately source or manufacture certain of our products, or discontinue use of products from Prohibited Companies, if any, when Section 5949 of the FY2023 NDAA go into effect in December 2027, this could adversely impact our sales to U.S. government agencies”
67. Microchip Technology Incorporated, Form 10-K filed 2026-05-21: “For example, on October 8, 2025, certain subsidiaries of Arrow Electronics (Arrow) were placed on the U.S. Department of Commerce Entity List. As a result, we could not ship or transfer products or other items that are governed by the U.S. Export Administration regulations (EAR) to those entities until they were removed from the Entity List. Nine days later, the U.S. Department of Commerce authorized Arrow and its subsidiaries to continue with certain transactions and indicated that Arrow and its subsidiaries would be removed from the Entity List.”
68. Microchip Technology Incorporated, Form 10-K filed 2026-05-21: “political instability, including changes in relations between China and Taiwan which could disrupt the operations of our Taiwan-based third-party wafer foundries, and subcontractors”
69. Microchip Technology Incorporated, Form 10-K filed 2026-05-21: “During fiscal 2026, we incurred special charges and other, net of $39.7 million primarily due to restructuring expenses, including $21.8 million related to the closure of our Tempe, Arizona wafer fabrication facility and $14.5 million related to contract exit costs. During fiscal 2025, we incurred special charges and other, net of $79.2 million primarily due to restructuring expenses, including $45.7 million related to contract exit costs and $27.1 million related to employee separation costs.”
70. Microchip Technology Incorporated, Form 10-K filed 2026-05-21: “In March 2025, we issued 29.7 million Depositary Shares, representing approximately 1.5 million shares of our Series A Preferred Stock. The Series A Preferred Stock has a $1,000.00 per share liquidation preference and $0.001 per share par value. As a result of the transaction, we received cash proceeds of $1.45 billion, net of underwriting fees and other issuance costs.”
71. Microchip Technology Incorporated, Form 10-K filed 2026-05-21: “The Covenant Relief Period means the period following the Restatement Effective Date to (but excluding) the earlier of (a) December 31, 2026 and (b) the date in which the Total Leverage Ratio for the most recently ended fiscal quarter shall not exceed 3.50 to 1.00 and certain other conditions are satisfied.”
72. Microchip Technology Incorporated, Form 10-K filed 2026-05-21: “As of March 31, 2026, the principal amount of our outstanding indebtedness was $5.54 billion.”
73. Microchip Technology Incorporated, Form 10-K filed 2026-05-21: “If the adjustment is upheld by the highest court that has jurisdiction over this matter in Malaysia, it could result in income taxes and penalties up to MYR 1.9 billion (approximately $480.2 million based on the exchange rate as of March 31, 2026).”
74. Microchip Technology Incorporated, Form 10-K filed 2026-05-21: “For example, in August 2024, we determined that an unauthorized party disrupted our use of certain servers and some of our business operations. As a result, certain of our manufacturing facilities were operating at less than normal levels for a period of time, and our ability to fulfill orders was temporarily impacted.”
75. Microchip Technology Incorporated, Form 10-K filed 2026-05-21: “During fiscal 2025, our overall business was weak as we navigated through a large inventory correction due to our customers holding excess levels of inventory. In March 2025, we implemented a business recovery plan which included restructuring actions to reduce our costs, resize our manufacturing operations and reduce our headcount. In fiscal 2026, we saw an improvement in our business due to increased demand after our customers reduced excess inventory levels. Net sales in all our product lines and all our geographies increased in fiscal 2026 compared to fiscal 2025.”
76. The record on this page: the filed annual figures (EDGAR's company facts)
77. Microchip Technology Incorporated, Form 10-K filed 2026-05-21: “The increase in net sales in fiscal 2026 compared to fiscal 2025 was primarily due to increased demand after customers reduced excess inventory levels as well as new customer design win activity entering production.”
78. Microchip Technology Incorporated, Form 10-K filed 2026-05-21: “At March 31, 2026, our distributors maintained 26 days of inventory of our products compared to 33 days at March 31, 2025. Over the past ten fiscal years, the days of inventory maintained by our distributors have fluctuated between approximately 17 days and 43 days. Inventory holding patterns at our distributors had a material adverse impact on our net sales in fiscal 2025 and the first half of 2026, as our distributors held relatively high levels of inventory and purchased fewer products from us.”
79. The record on this page: revenue by line and by geography, as tagged in the annual report (the SEC's financial statement data sets)
80. Microchip Technology Incorporated, Form 10-K filed 2026-05-21: “Mixed-signal Microcontrollers $ 2,355.4 50.0 $ 2,249.7 51.1 Analog 1,329.0 28.2 1,157.0 26.3 Other 1,028.7 21.8 994.9 22.6 Total net sales $ 4,713.1 100.0 $ 4,401.6 100.0”
81. Microchip Technology Incorporated, Form 10-K filed 2026-05-21: “Net sales from our analog product line increased approximately 14.9% in fiscal 2026 compared to fiscal 2025. The increase in net sales was primarily due to increased demand due to a portion of our customer base having reduced excess inventory levels as well as new customer design win activity entering production.”
82. Microchip Technology Incorporated, Form 10-K filed 2026-05-21: “Our other product line includes FPGA products, royalties associated with licenses for the use of our SuperFlash and other technologies, sales of our intellectual property, fees for engineering services, memory products, timing systems, manufacturing services (wafer foundry and assembly and test subcontracting), legacy application specific integrated circuits, and certain products for aerospace applications.”
83. Microchip Technology Incorporated, Form 10-K filed 2026-05-21: “Net sales related to these products and services increased approximately 3.4% in fiscal 2026 compared to fiscal 2025. The increase in net sales was primarily due to sales of certain of our intellectual property rights and also due to a portion of our customer base having worked through their previous high inventory balances and needing to purchase products at a higher level to support demand.”
84. Microchip Technology Incorporated, Form 10-K filed 2026-05-21: “Fiscal Year Ended March 31, 2026 Semiconductor products Technology licensing Total Net sales $ 4,549.3 $ 163.8 $ 4,713.1 Cost of sales 1,992.0 — 1,992.0 Gross profit $ 2,557.3 $ 163.8 $ 2,721.1”
85. Microchip Technology Incorporated, Form 10-K filed 2026-05-21: “The gross margin impact of changes in licensing revenue, which has no associated cost of sales, was a favorable impact of $32.7 million in fiscal 2026 compared to fiscal 2025.”
86. Microchip Technology Incorporated, Form 10-K filed 2026-05-21: “we are now in a significant revenue growth mode and we expect our inventory to continue to decline as we appropriately manage our manufacturing and foundry resources. However, there continues to be uncertainty regarding overall macroeconomic conditions, including increased geopolitical tensions, risk of a recession, and the effects of potential trade policies, including tariffs.”
87. Microchip Technology Incorporated, Form 10-K filed 2026-05-21: “Our investments in equipment and facilities during the next 12 months are expected to be approximately $100.0 million.”
88. Microchip Technology Incorporated, Form DEF 14A filed 2026-07-06: “Data center and aerospace and defense led the growth in the second half of fiscal year 2026, but nearly all end markets are now participating in the recovery.”
89. Microchip Technology Incorporated, Form 10-K filed 2026-05-21: “With the exception of Arrow Electronics, the Company's largest distributor, which accounted for 14% of the accounts receivable balance as of March 31, 2026, no other customer accounted for more than 10% of the accounts receivable balance as of March 31, 2026 or March 31, 2025.”
90. Microchip Technology Incorporated, Form 10-K filed 2026-05-21: “Fab 5 and many such technologies are already running in Fab 4 and Fab 5, both of which have ample clean room space for expansion.”
91. Microchip Technology Incorporated, Form 10-K filed 2026-05-21: “The impact of unabsorbed capacity charges was an unfavorable impact of $27.8 million in fiscal 2026 compared to fiscal 2025. Unabsorbed capacity charges are expensed as incurred when we operate our manufacturing facilities below normal levels.”
92. Microchip Technology Incorporated, Form DEF 14A filed 2026-07-06: “In AI infrastructure, we were first to market with a PCIe Gen 6 switch on 3-nanometer technology”

Where the revenue comes from

Lines of business in fiscal 2026: Semiconductor Products 97%, Technology Licensing 4%. As tagged in its annual report (Form 10-K, filed 2026-05-21).

Who runs it

Sanghi, Steve (President, CEO and Chair of Bd); Bjornholt, James Eric (SENIOR CORPORATE VP AND CFO); Simoncic, Richard J (CHIEF OPERATING OFFICER); Bunker, Mathew B (SR CORPORATE VP, OPERATIONS); Duvenhage, Stephanus (Sr. Corp VP, Analog Bus Unit); Krawczyk, Joseph R II (SR. CORP VP, WW CLIENT ENGMT); Little, Mitchell R (Senior VP, WW Client Engagemnt); Barker, Ellen (director); Cassidy, Richard B. II (director); Chapman, Matthew W (director); and 2 more. 12 officers and directors have filed their own trades in the last fifteen months, names and titles as filed with the SEC, through 2026-10-05.

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