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Microchip Technology Incorporated develops, manufactures, and sells smart, connected, and secure embedded control solutions in the Americas, Europe, and Asia. It operates through two segments, Semiconductor Products and Technology Licensing. The company offers general purpose 8-bit, 16-bit, 32-bit, and 64-bit mixed-signal microcontrollers; 32-bit and 64-bit embedded mixed-signal microprocessors; and specialized mixed-signal microcontrollers for automotive, industrial, computing, communications, lighting, power supplies, motor control, human machine interface, security, wired connectivity, and wireless connectivity applications. It also provides analog products, including power management, linear, mixed-signal, high voltage, thermal management, discrete diodes and MOSFETS, radio frequency (RF), drivers, safety, security, timing, USB, ethernet, wireless, and other interface products; field-programmable gate array (FPGA) products; and application development tools that enable system designers to program mixed-signal microcontroller, FPGA, and microprocessor products. In addition, the company offers memory products that consist of serial electrically erasable programmable read only memory (EEPROMs), serial flash memories, parallel flash memories, serial static random-access memory (SRAM), and electrically erasable random-access memory (EERAMs) for production of footprint devices; and licenses its SuperFlash embedded flash and non-volatile memory technologies to foundries, integrated device manufacturers, and design partners for use in the manufacture of microcontroller products, gate array, RF, analog, and neuromorphic compute products, as well as provides engineering services. Further, it provides wafer foundry and assembly, and test subcontracting manufacturing services; and timing systems, application specific integrated circuits, and products for aerospace applications. The company was incorporated in 1989 and is headquartered in Chandler, Arizona.
Recovery Outlook | Analyst targets range from $56 to $90, with projections of 30% EPS CAGR from FY2025 to FY2028, signaling potential for significant rebound |
Market Positioning | Delve into Microchip's strong foothold in industrial and automotive sectors, with aerospace and defense contributing 18% of revenue and offering growth potential |
Strategic Reshaping | Explore Microchip's aggressive cost-cutting measures, including the closure of Fab 2, projected to yield $90 million in annual savings and boost margins |
Cyclical Challenges | Microchip navigates a significant downturn in the semiconductor industry, with a 50-60% peak-to-trough correction, one of the deepest in the secto |

Metrics to compare | MCHP | Sector Sector - Average of metrics from a broad group of related Technology sector companies | Relationship RelationshipMCHPPeersSector | |
|---|---|---|---|---|
P/E Ratio | −166.2x | −96.5x | 12.4x | |
PEG Ratio | 1.26 | 0.07 | 0.01 | |
Price / Book | 6.0x | 2.0x | 2.4x | |
Price / LTM Sales | 9.6x | 3.5x | 2.4x | |
Upside (Analyst Target) | 13.8% | 9.7% | 19.5% | |
Fair Value Upside | Unlock | −11.5% | 3.7% | Unlock |