Core Insights - Microchip Technology has introduced the MCP9604, a four-channel I2C thermocouple conditioning IC that offers up to ± 1.5°C accuracy, addressing the need for precision in various production-line applications [1][2][5] Product Features - The MCP9604 integrates multiple components, reducing the need for up to 15 discrete components, thus simplifying system design and lowering costs [2][3] - It supports eight common thermocouple types, including K-type, and operates within a temperature range of -200°C to +1372°C, making it versatile for industrial applications [4] - The device utilizes higher-order NIST ITS-90 equations for improved accuracy, achieving ninth-order accuracy with K-type thermocouples [2] Development and Support - The MCP9604 is supported by the Microchip EV19L27A evaluation board, which can connect to four thermocouples and includes a microcontroller for data processing [6] - Free software is available for the evaluation board, facilitating user interaction and data visualization [6] Pricing and Availability - The MCP9604 is priced at $10.56 each for orders of 10,000 units, available in tape-in-reel or rail configurations [7] - The EV19L27A evaluation board is priced at $96.00 and is currently available [7]

Core Insights - Madison Investments released its second-quarter 2025 investor letter for the Madison Mid Cap Fund, which reported a return of 5.2%, underperforming the Russell Midcap Index's 8.5% increase [1] - The fund highlighted Microchip Technology Incorporated (NASDAQ:MCHP) as one of its top five contributors for the quarter, alongside Amphenol, Arista Networks, MKS, and Liberty Formula One [3] Fund Performance - The Madison Mid Cap Fund (Class Y) achieved a return of 5.2% in Q2 2025, while the Russell Midcap Index rose by 8.5% during the same period [1] - The fund's top five holdings were mentioned, indicating a focus on specific stocks that contributed positively to its performance [1] Microchip Technology Incorporated (MCHP) - Microchip Technology's stock experienced a one-month return of -4.96% and a 52-week decline of 15.46%, closing at $65.15 per share with a market capitalization of $35.16 billion as of September 19, 2025 [2] - The company benefited from improved sentiment regarding the semiconductor cycle, with its CEO suggesting that the business has bottomed out for this cycle [3] - Despite its potential, Microchip Technology is not among the 30 most popular stocks among hedge funds, with 54 hedge fund portfolios holding its shares at the end of Q2 2025, a decrease from 56 in the previous quarter [4]

Core Viewpoint - The semiconductor industry is experiencing a recovery phase, with significant sales growth anticipated in the coming quarters, driven by demand from various sectors including industrial and automotive markets [3][14]. Group 1: Market Signals and Trends - In October of the previous year, early signals of recovery were noted when PCB manufacturers like Jingwang Electronics and Shennan Circuit reported full capacity [3]. - Following the election of a new political leader, there was a surge in inventory purchases as companies anticipated market changes, leading to increased demand [3]. - Global semiconductor sales peaked in mid-2022 and have shown signs of recovery since Q4 2024, with sales rebounding above previous highs [3][5]. Group 2: Company Performance and Pricing Dynamics - Companies in the chip distribution sector reported significant performance improvements, with some experiencing a doubling of orders, particularly for ADI and Microchip products [5]. - TI's price adjustments affected approximately 66,000 models, representing about 76% of its total offerings, indicating a strategic move to influence market pricing [6]. - Despite TI's price increases, the overall market did not experience a widespread price surge, suggesting a cautious approach from manufacturers [6]. Group 3: Memory Market Insights - The memory market has seen substantial price increases, with Micron's prices doubling from January to March and again from March to May [10][12]. - There is a growing trend of memory manufacturers attempting to control prices through production adjustments, which has led to a more volatile market environment [12]. - The demand for small capacity eMMC has surged, with sales reported to be twice that of the previous year, indicating a strong recovery in the memory segment [10]. Group 4: Capacity and Supply Chain Dynamics - Domestic wafer fabs are reportedly operating at full capacity, with significant demand noted even when the downstream market appears stable [13][14]. - The supply chain is experiencing delays and shortages, particularly for domestic brands, while overseas markets are not facing the same level of pressure [14]. - The semiconductor industry is expected to see a delayed transmission of recovery signals to distributors and end-users, as the supply chain is complex and lengthy [14].

Core Insights - Microchip Technology has launched the next generation of LAN9645xF and LAN9645xS Gigabit Ethernet Switches designed for high-speed, reliable communication in industrial environments [1][4] - The switches offer multiple configurations, including 5-, 7-, and 9-port options, with up to 5 integrated 10/100/1000BASE-T PHYs, enhancing flexibility for specific application needs [2][4] - The LAN9645xF variant supports advanced features like Time-Sensitive Networking (TSN) and Audio Video Bridging (AVB), while the LAN9645xS is a low-cost unmanaged switch with some Precision Time Protocol (PTP) support [3][4] Product Features - The LAN9645xF device enhances network reliability with hardware-assisted redundancy, meeting IEC 62439-3 standards for Parallel Redundancy Protocol (PRP) and High-availability Seamless Redundancy (HSR), ensuring zero packet loss during faults [3] - Both devices are supported by development tools, including the LAN96459 EDS2 Daughter Card for use with compatible Curiosity Evaluation Boards, facilitating easier design and deployment of industrial networks [5] Market Applications - The LAN9645xF/S switches are adaptable for various markets, including industrial Ethernet applications, aerospace and defense, data centers, and sustainability [4] - Microchip Technology aims to lower system costs for customers by integrating advanced features into a single solution, backed by global technical support and a comprehensive suite of development tools [4] Availability - The LAN9645xF and LAN9645xS switches are currently available in limited sample quantities, purchasable directly from Microchip or through authorized distributors [6]

Core Insights - Microchip Technology has launched a new family of DualPack 3 (DP3) power modules featuring advanced IGBT7 technology, aimed at high-growth applications in motor drive, data centers, and sustainability [1][2] Product Features - The DP3 power modules are available in six variants with voltage ratings of 1200V and 1700V, and high current ratings ranging from 300A to 900A, designed for compact and cost-effective power converter solutions [1][3] - IGBT7 technology in these modules reduces power losses by 15-20% compared to previous IGBT4 devices and can operate reliably at temperatures up to 175°C during overload conditions [2] - The modules are designed to enhance protection and control during high-voltage switching, making them suitable for various applications including industrial drives, renewables, traction, energy storage, and agricultural vehicles [2] Design and Integration - The DP3 modules feature a compact footprint of approximately 152 mm × 62 mm × 20 mm, allowing for increased power output without the need for paralleling multiple modules, thus reducing system complexity and Bill of Materials (BOM) costs [3] - These modules provide a second-source option to industry-standard EconoDUAL™ packages, offering greater flexibility and supply chain security for customers [3] - The modules can be integrated with Microchip's microcontrollers, microprocessors, and other components to streamline the design process and accelerate development time [4] Availability - The DualPack 3 power modules are now available in production quantities and can be purchased directly from Microchip or through authorized distributors [6]

Core Insights - The article discusses the challenges of managing excess inventory in the semiconductor industry, highlighting the financial burden of storage and capital costs associated with unsold materials [1] - It promotes a service called "Chip Superman," which has served 21,000 users and offers rapid transaction completion for inventory clearance [2][8] Inventory Management - A significant amount of obsolete materials is held in inventory, leading to monthly costs of at least 5,000, resulting in a potential loss of 30,000 over six months if not sold [1] - The article emphasizes the need for effective promotion strategies for unsold materials to mitigate losses [1] Sales and Offers - "Chip Superman" is actively selling various semiconductor components at discounted prices, with a detailed list of available items including brands like ADI, TI, and Microchip, along with their quantities and production years [5][6] - The total inventory includes over 50 million chips across 1,000+ models, valued at over 100 million, stored in a 1,600 square meter smart warehouse [8] Purchase Requests - The article also includes a section for purchasing specific semiconductor components, indicating demand for certain models from brands like Skyworks and pSemi [7] Additional Information - The service claims to complete transactions in as little as half a day, addressing the urgency of clearing inventory [2][8] - The company has established a quality control process for each component, ensuring reliability for its users [8]

Summary of the Conference Call on the Semiconductor Industry Industry Overview - The conference featured presentations from major companies in the semiconductor sector, including Nvidia, Broadcom, AMD, ARM, Cadence, Synopsys, Intel, and others, covering various sub-sectors such as Digital/AI Semiconductors, EDA Software, Analog, SemiCap Equipment, and Memory/Storage [1] Key Takeaways AI Opportunities - Companies expressed a bullish outlook on long-term AI opportunities, with expectations for robust spending in 2026 [2][8] - Nvidia anticipates capital spending on AI to exceed $3 trillion by 2030, while Broadcom expects AI revenue to surpass combined Software and Non-AI revenue within two years [9] EDA Software Growth - EDA companies maintain a positive outlook on long-term growth, although Synopsys lowered expectations for its IP business due to various factors [3][10] - Cadence reported robust chip design activity and growing adoption of AI offerings, while Synopsys faced challenges from disruptions in China and a weak IP outlook [11] Analog Market Recovery - Analog companies are witnessing early signs of cyclical recovery, although some sluggishness persists in the automotive market [4][12] - Texas Instruments noted recovery in four out of five end markets, with expectations for significant growth in the data center market [13] Equipment Spending Trends - Equipment suppliers expect continued growth in spending for 2025, but anticipate muted growth in 2026 due to digestion of trailing-edge capacity [5][14] - Applied Materials and Lam Research are positioned for growth due to their exposure to leading-edge logic and advanced packaging [15] Storage Market Dynamics - Storage providers are optimistic about tight supply/demand conditions in both NAND and HDD markets, which should support pricing [16] - Seagate is on track to qualify its HAMR product with customers, while Western Digital and SanDisk expect stable pricing and continued growth in the NAND market [17] Additional Insights - The "merchant vs custom" debate remains a focal point for investors, with Nvidia and Broadcom positioned as leaders in their respective segments [8] - The conference highlighted the importance of AI in driving future growth across various sectors, with companies like IBM emphasizing their unique positioning to meet AI deployment needs [9] Conclusion - The semiconductor industry is poised for significant growth driven by AI, with various sub-sectors showing resilience and recovery potential. Companies are strategically positioned to capitalize on these trends, although challenges remain in specific markets.

Core Viewpoint - The article discusses the challenges and opportunities in managing excess inventory of electronic components, highlighting the need for effective promotion and sales strategies to mitigate financial losses from storage and capital costs. Group 1: Inventory Management - A significant amount of obsolete inventory, totaling 100,000 units, incurs monthly storage and capital costs of at least 5,000, leading to a potential loss of 30,000 over six months if not sold [1] - The company offers discounted sales for excess inventory, aiming to clear stock quickly, with transactions completed in as little as half a day [2][8] Group 2: Inventory Listings - The article provides a detailed list of available electronic components for sale, including various models from brands like Microchip, TI, and ST, with quantities ranging from 600 to 90,000 units [5][6] - Specific models listed include the Microchip ATMXT2952T2-C2UR057 with 71,000 units and the VISHAY BAV103-GS08 with 170,000 units, indicating a diverse inventory [5][6] Group 3: Demand for Components - There is an active demand for specific components, with requests for large quantities of models from brands like Toshiba and Qualcomm, indicating a robust market for certain electronic parts [7] - The company emphasizes its capability to meet these demands through its extensive inventory and quick transaction processes [8] Group 4: Company Infrastructure - The company operates a 1,600 square meter smart storage facility with over 1,000 models and a total inventory of 50 million chips, valued at over 100 million [8] - An independent laboratory is established for quality control, ensuring that each component meets industry standards before sale [8]

Market Overview - U.S. equities rebounded in Q2 2025 after a correction in Q1, overcoming tariff and growth concerns as well as geopolitical issues [2] - The recovery was driven by a return to AI market leadership, with hyperscalers committing to high levels of AI-driven capital expenditures [2] - Semiconductor companies experienced solid earnings and renewed expectations for widespread AI adoption [2] Company Performance - Broadcom (AVGO) benefited from increased adoption of its custom-designed chips as an alternative to Nvidia's GPUs, leading to a share rally following reduced U.S.-China tariffs [3] - Microchip Technology (MCHP) showed strong financial results, aided by a cyclical rebound and the return of its long-tenured CEO [4] - Meta Platforms (META) saw its shares rise due to continued gains in digital advertising, supported by AI enhancing engagement and monetization [5] Sector Analysis - The IT and financial sectors contributed positively to the portfolio, while health care and energy sectors were the main detractors [17] - Stock selection in industrials, health care, energy, consumer staples, and consumer discretionary sectors negatively impacted relative returns [18] - McKesson (MCK) performed well due to strong fundamentals in U.S. pharma and specialty distribution [5] Portfolio Positioning - New positions included Exxon Mobil (XOM), which is lowering costs and emissions while increasing production, and Boeing (BA), which is ramping up 737 production [7] - Procter & Gamble (PG) was added to the portfolio as a higher-quality name trading at a discount, expected to provide stability [8] - Merck was replaced with AstraZeneca (AZN) due to concerns over Merck's patent expiration on Keytruda [9] Outlook - The market is characterized by elevated geopolitical and policy uncertainty, but there are opportunities for disciplined long-term stock pickers focusing on value stocks [11][12] - The valuation disparity between growth and value stocks has widened, suggesting potential for value recovery following significant underperformance [12][16]

Market Overview - The current investment landscape appears stable but is experiencing underlying chaos due to geopolitical tensions, deglobalization, rising debt levels, and supply chain disruptions [2] - Nominal growth is faster but also more volatile and unpredictable, with companies needing to find internal resilience as external support from low interest rates and inflation diminishes [2] Structural Innovations - Innovations such as AI, blockchain, GLP-1 therapies, and decarbonization are fundamentally reshaping business growth [3] - Traditional business models, particularly in software, are threatened by AI's ability to produce similar outputs at low costs [3] Economic Shifts - The year 2025 is seen as a pivotal point marking the end of the initial phase of significant economic regime shifts, with multiple macroeconomic pillars unwinding simultaneously [5] - The U.S. Treasury is now offering meaningful yields on new debt, leading to an annual interest expense approaching $1 trillion, which presents immediate fiscal challenges [10] Supply Chain and Inflation - Governments are localizing supply chains and building strategic stockpiles, leading to inefficiencies and increased costs in infrastructure and manufacturing [11][12] - A new regime of persistent inflation is anticipated, driven by constrained supply and inelastic demand, affecting affordability for consumers and corporations [13] Corporate Performance - The ClearBridge Value Strategy outperformed its benchmark, with strong contributions from sectors like utilities and communication services, particularly benefiting from AI-related developments [19][20] - The health care sector faced challenges due to regulatory concerns and rising medical costs, impacting major companies like UnitedHealth Group [21] Portfolio Positioning - A shift towards value-oriented investments is noted, with sectors tied to industrial activity and energy production expected to benefit from infrastructure rebuilding [23] - The strategy emphasizes the importance of companies with pricing power and real assets, as traditional safe havens face valuation pressures [23] Outlook - The U.S. economy is currently supported by fiscal expansion, but concerns about sustainability are rising, with tariffs and immigration policies likely to increase inflation and reduce growth [26][27] - Opportunities are identified in real assets like gold and copper, which serve as hedges against inflation and geopolitical risks [27]