Microchip (MCHP) 2025 Conference June 04, 2025 12:20 PM ET Speaker0 Good morning. Welcome. Let's get started. I'm Vivek Arya from BFA's semiconductor, semi cap equipment research team. Really delighted to have Eric Bjornhardt, the CFO of Microchip join us this morning for a fireside session. I'll go through my questions, but please feel free to raise your hand if you'd like to bring up anything in between. But a very warm welcome to you, Eric. Really appreciate you joining us. And maybe as a start, know tha ...

CHANDLER, Ariz., June 03, 2025 (GLOBE NEWSWIRE) -- (NASDAQ:MCHP) – Microchip Technology Incorporated, a leading provider of smart, connected, and secure embedded control solutions, today announced that the Company will present at the Bank of America 2025 Global Technology Conference on Wednesday, June 4, 2025 at 9:20 a.m. (Pacific Time). Presenting for the Company will be Mr. Eric Bjornholt, Senior Vice President and Chief Financial Officer. A live webcast of the presentation will be made available by B of ...

CHANDLER, Ariz., May 29, 2025 (GLOBE NEWSWIRE) -- Microchip Technology Incorporated, a leading provider of smart, connected, and secure embedded control solutions, today updated the range of its prior guidance for net Sales and GAAP and non-GAAP earnings per share for its fiscal first quarter of 2026 ending June 30, 2025. Microchip now expects consolidated net sales for the June quarter to be between $1.045 billion and $1.070 billion. Microchip previously provided guidance on May 8, 2025 of consolidated net ...

Microchip (MCHP) FY 2025 Conference May 28, 2025 10:50 AM ET Speaker0 All right. Good morning, and, thank you for coming to T. D. Cowen's fifty third Annual TMT Conference. Really pleased to be joined by Rich and Eric from Microchip. Guys, thank you for participating in our conference. Speaker1 Thanks for having us. Speaker0 I think to start, maybe we could walk through an update on what Steve's vision is having come back into the CEO role and maybe an update on where we're at and some of the key points in ...

CHANDLER, Ariz., May 27, 2025 (GLOBE NEWSWIRE) -- (NASDAQ:MCHP) – Microchip Technology Incorporated, a leading provider of smart, connected, and secure embedded control solutions, today announced that the Company will present at the TD Cowen 53rd Annual Global Technology, Media, and Communications Conference on Wednesday, May 28, 2025 at 10:50 a.m. (Eastern Time). Presenting for the Company will be Mr. Richard Simoncic, Chief Operating Officer, and Mr. Eric Bjornholt, Senior Vice President and Chief Financi ...

Market Expansion and Product Development - In July 2024, the company entered the 64-bit mixed-signal microprocessor market, expanding beyond the 32-bit architecture[25]. - The company targets the 8-bit, 16-bit, and 32-bit mixed-signal microcontroller markets, with a focus on providing cost-effective embedded control solutions[27]. - The company has a broad product portfolio that supports key growth trends in AI/ML, data centers, edge computing, and IoT[22]. - The company’s embedded control products compete on technical innovation, performance, and a comprehensive suite of development tools[62][63]. Financial Performance and Sales - Approximately 36% of sales in fiscal 2025 came from products produced at the company's own wafer fabrication facilities located in the U.S.[50]. - In fiscal 2025, 45% of net sales were derived through distributors, down from 47% in fiscal 2024, while direct sales accounted for 55% in fiscal 2025 compared to 53% in fiscal 2024[59]. - Arrow Electronics, the largest distributor, contributed 10% of net sales in fiscal 2025 and 12% in fiscal 2024, with no other distributor or direct customer exceeding 10% of net sales[59]. - Approximately 64% of the company's net sales in fiscal 2025 came from products produced at outside wafer foundries[101]. - The company operated at below normal capacity levels in fiscal 2024 and fiscal 2025, resulting in unabsorbed capacity charges of $40.7 million and $173.0 million, respectively[117]. Cost Management and Operational Efficiency - The closure of Fab 2 is expected to generate annual cash savings of approximately $90 million, with an additional $25 million in savings from reduced compensation costs in Fab 4 and Fab 5[43][47]. - In fiscal 2025, approximately 67% of assembly and test requirements were performed in internal facilities, with plans to increase internal capacity capabilities[51]. - The company plans to invest $880 million over the next several years to expand silicon carbide (SiC) and silicon production capacity at Fab 5[45]. - The company has paused its multi-year $800 million expansion plan at Fab 4 through fiscal 2026, planning to resume as the business outlook improves[44]. Supply Chain and External Factors - The company relies on third-party contractors for approximately 33% of its assembly and testing requirements in fiscal 2025[101]. - The company faces risks related to supply chain disruptions, including geopolitical tensions and trade restrictions, which may limit access to necessary materials[100]. - The U.S. imposed additional tariffs on imports from China and other countries in March and April 2025, which may impact operating results[96]. - The semiconductor industry is characterized by intense competition, with significant price erosion and rapid technological changes impacting market dynamics[61]. Regulatory and Compliance Issues - Environmental regulations impact operational costs, with potential liabilities arising from non-compliance with chemical and gas regulations[66][67]. - The company must navigate compliance with various regulations regarding privacy, data protection, and cybersecurity, which could pose operational risks[90]. - Compliance with government regulations, such as the Cybersecurity Maturity Model Certification, is essential for maintaining contracts and could increase operational costs[137]. - The California Consumer Privacy Act (CCPA) and its amendments, effective January 1, 2023, impose increased privacy and security obligations on entities handling personal data[173]. Employee and Workforce Management - The company maintains a global workforce of approximately 19,400 employees, emphasizing that employees are its greatest strength[68]. - The company invests in employee development through training programs, mentorship, and tuition reimbursement, fostering a culture of continuous improvement[72][73]. - Competition for qualified personnel has intensified, particularly for roles in management, technical, and AI-related fields, which could delay product development and adversely affect net sales[148][149]. - A global workforce reduction initiated in Q4 fiscal 2025 may negatively impact employee morale and the company's attractiveness as an employer[150]. Cybersecurity and Technology Risks - The company has experienced cyber-attacks, including a significant incident in August 2024 that temporarily impacted manufacturing operations[156]. - Continuous improvements to cybersecurity measures have been implemented, but there is no assurance that future attacks can be fully prevented[158]. - The company does not have specific insurance coverage for cybersecurity matters, which may leave it vulnerable to liabilities arising from breaches[162]. - Security vulnerabilities in products may expose the company to increased cybersecurity risks, particularly in applications that process data[163]. Legal and Tax Liabilities - The company faces potential income tax liabilities from ongoing disputes, with possible penalties up to $410 million related to Malaysian tax assessments[195]. - The company received assessments from German Tax Authorities that could result in income taxes and penalties up to $92 million if upheld[196]. - The company is subject to significant financial resources for defending its intellectual property rights, which may be adversely affected by foreign laws[184]. Environmental and Social Governance (ESG) - The company has publicly announced environmental goals, including greenhouse gas emissions reduction and achieving net zero carbon emissions, which may expose it to scrutiny and risks[213]. - New climate-related regulations, such as California's disclosure requirements, could impose additional costs and risks on the company[214]. - Customer demands for conflict-free minerals may result in additional expenses and potential loss of sales if compliance cannot be met[209]. - Failure to meet evolving stakeholder expectations regarding ESG could adversely affect the company's business and stock price[216].

Core Insights - Microchip Technology is launching PolarFire® Core FPGAs and SoCs to address rising Bill of Material (BOM) costs, optimizing performance and budgets for developers [1][3] - The new PolarFire Core devices can reduce customer costs by up to 30% by eliminating integrated serial transceivers while maintaining low power consumption and high reliability [1][2] Product Features - PolarFire Core families are designed for various markets including automotive, industrial automation, medical, communication, defense, and aerospace, featuring Single Event Upset (SEU) immunity and a quad-core, 64-bit RISC-V® microprocessor [2] - The devices are pin-to-pin compatible with the full line of PolarFire FPGAs, enhancing value for cost-sensitive applications [2] Market Context - The FPGA market is facing challenges as many manufacturers have raised prices, prompting OEMs to seek cost-effective solutions [3] - Microchip's PolarFire Core devices are positioned to provide market-leading solutions at favorable price points, addressing both price and power budget challenges [3] Development Support - PolarFire Core devices are supported by Microchip's Libero® SoC Design Suite, SmartHLS™ compiler, and VectorBlox™ Accelerator SDK, facilitating rapid RISC-V application development [4] - Compatibility with existing PolarFire FPGA and SoC development boards is emphasized to expedite silicon development [4] Availability - Information regarding pricing and purchasing can be obtained through Microchip sales representatives or their official website [5]

Core Insights - The National Security Agency (NSA) has introduced the Commercial National Security Algorithm Suite 2.0 (CNSA 2.0) to establish quantum-resistant cryptographic standards, urging data centers and computing markets to become post-quantum ready within two years [1][3] - Microchip Technology has developed the MEC175xB embedded controllers featuring post-quantum cryptography, enhanced security features, and low power consumption to meet evolving security demands [1][2] Company Overview - Microchip Technology Inc. is a leading provider of smart, connected, and secure embedded control and processing solutions, serving over 100,000 customers across various markets including industrial, automotive, consumer, aerospace, defense, communications, and computing [10] Product Features - The MEC175xB family employs a modular approach for developers to adopt post-quantum cryptography efficiently, ensuring long-term data protection without compromising existing functionality [2][3] - These controllers incorporate NIST-approved post-quantum cryptographic algorithms, including Module-Lattice-Based Digital Signature Algorithms (ML-DSA) and Module-Lattice-Based Key-Encapsulation Mechanism (ML-KEM), implemented in immutable hardware to block potential attack paths [3][4] - The controllers feature secure boot and firmware update schemes configurable for CNSA 1.0 or 2.0, enhancing system integrity and authenticity [4] Technical Specifications - The MEC175xB controllers are powered by an Arm Cortex-M4F processor running at 96 MHz, with 480 KB of SRAM and various connectivity options including I3C and optional USB 2.0 Full-Speed interface [4] - They are compatible with MPLAB X Integrated Development Environment (IDE) and supported by example projects and development boards [6] Availability - The MEC175xB controllers are currently available as part of Microchip's early adopter program, with further information accessible through Microchip's sales representatives or website [7]

Microchip (MCHP) FY Conference May 14, 2025 03:00 PM ET Speaker0 Alright. Let's go ahead and get started. Good afternoon. Welcome to JPMorgan's fifty third Annual Technology, Media, and Communications Conference. My name is Harlan Sur. I'm the semiconductor and semiconductor capital equipment analyst for the firm. Very pleased to have Eric Bjornholt, chief financial officer of Microchip, here with us today. Microchip, top five microcontroller supplier globally, number three market share in industrial market ...

Company Overview - Microchip Technology Incorporated is a leading provider of smart, connected, and secure embedded control solutions [3] - The company serves approximately 112,000 customers across various markets including industrial, automotive, consumer, aerospace and defense, communications, and computing [3] - Microchip is headquartered in Chandler, Arizona, and offers comprehensive product portfolios and development tools to reduce risk and lower total system costs [3] Upcoming Event - The company will present at the J.P. Morgan 53rd Annual Global Technology, Media, and Communications Conference on May 14, 2025, at 3:00 p.m. Eastern Time [1] - Mr. Eric Bjornholt, Senior Vice President and Chief Financial Officer, will represent the company during the presentation [1] - A live webcast of the presentation will be available on the Microchip website [1]