Microchip Technology Incorporated is a leading provider of smart, connected, and secure embedded control solutions. The company develops, manufactures, and sells a broad portfolio of microcontrollers, microprocessors, field-programmable gate arrays (FPGAs), analog, and memory products. Microchip's Total System Solution (TSS) approach combines hardware, software, and services to help customers reduce costs, increase revenue, and manage risks. The company's products are used in a wide variety of applications across key end markets including automotive, aerospace and defense, communications, consumer appliances, data centers, and industrial. Microchip competes on the basis of technical innovation, performance, and cost-effectiveness.

• Employees: 22,300 (as of March 31, 2024)
• Geographic Footprint: The Americas, Europe and Asia
• Headquarters: Chandler, Arizona
• Founded: 1989
• Number of locations/facilities: Multiple facilities worldwide
• Revenue: $7.63 billion (FY2024)
• Key Subsidiaries/Brands: Atmel Corporation, Microsemi Corporation, Silicon Storage Technology, Inc.

• CEO: Ganesh Moorthy
• Executive Chair: Steve Sanghi
• Chief Operating Officer: Richard J. Simoncic
• Senior Vice President and Chief Financial Officer: J. Eric Bjornholt
• Senior Vice President, MCU8 and MCU16 Business Units: Stephen V. Drehobl

Key leaders have extensive experience in the semiconductor industry, with Mr. Sanghi serving as CEO from 1991 to 2021 and Mr. Moorthy as CEO since 2021.

• Annual Revenue: $7.63 billion (FY2024)
• Net Income: $1.91 billion (FY2024)
• Total Assets: $15.87 billion (as of March 31, 2024)
• Number of Employees: 22,300 (as of March 31, 2024)
• Key Financial Highlights: Net sales decreased by 9.5% year-over-year, gross profit decreased by 12.3% year-over-year, and net income decreased by 15.9% year-over-year.

Microchip offers a broad range of embedded control solutions:

• Mixed-signal Microcontrollers: General-purpose microcontrollers with integrated analog and mixed-signal functionality.
• Analog Products: Power management, linear, mixed-signal, high voltage, thermal management, discrete diodes, MOSFETS, RF, drivers, safety, security, timing, USB, ethernet, wireless and other interface products.
• Other Products: FPGA products, royalties from technology licenses, intellectual property sales, engineering services, memory products, timing systems, and manufacturing services.

Microchip operates through two reportable segments:

• Semiconductor Products: Includes the design, development, manufacture, and sale of microcontrollers, microprocessors, FPGAs, analog, and memory products.
• Technology Licensing: Includes the licensing of SuperFlash and other technologies.

The semiconductor products segment accounted for the majority of the company's revenue in fiscal 2024. The company does not allocate operating expenses, interest income, interest expense, other income or expense, or provision for or benefit from income taxes to these segments.

Microchip's strategy focuses on providing cost-effective embedded control solutions with advantages in size, performance, power usage, and ease of development. Key strategic initiatives include:

• Expanding production capacity in the U.S.
• Transitioning products to more advanced process technologies.
• Maintaining a high level of manufacturing control through ownership of manufacturing resources.
• Leveraging a broad product portfolio to offer Total System Solutions.
• Focusing on innovation and new product development.

The company aims to capitalize on disruptive growth trends such as 5G, data centers, sustainability, IoT, and electric vehicles. Microchip is also investing in silicon carbide (SiC) production capacity.

The semiconductor industry is intensely competitive with major domestic and international companies. Key trends affecting the business include:

• Market Position: Microchip is a major player in the embedded control solutions market.
• Key Competitors: Major domestic and international semiconductor companies.
• Industry Trends: Price erosion, rapid technological change, and increasing demand for embedded control solutions.

The company competes on the basis of technical innovation, performance, and cost-effectiveness. Microchip also faces competition from companies that copy or reverse engineer its products.

• Economic Risks: Global economic conditions, including inflation, interest rates, and supply chain disruptions, can impact the company's operating results and customer demand.
• Manufacturing Risks: The company's manufacturing operations are complex and sensitive to various factors, including contamination, raw material availability, and equipment performance.
• Competition Risks: Intense competition in the semiconductor industry can lead to pricing pressures, reduced sales, and loss of market share.
• Cybersecurity Risks: The company is subject to cyber-attacks, security breaches, and data privacy risks, which could disrupt operations and expose sensitive information.
• Regulatory Risks: The company is subject to various regulations related to trade, export controls, environmental protection, and data privacy, which could increase costs and limit operations.