Core Insights - The automotive industry is transitioning to an interoperable ecosystem with the adoption of the Automotive SerDes Alliance Motion Link (ASA-ML) open standards, as demonstrated by AVIVA Links' acquisition by NXP Semiconductors [1][4] Industry Overview - The Automotive SerDes Alliance has over 175 members, including major OEMs like BMW, Ford, GM, Hyundai, Nio, Renault, Stellantis, Volvo, and Xiapeng Motors, collaborating to bring ASA-ML systems to market [2] - The ASA-ML standard supports asymmetric high-speed video, control, and data transmission up to 16 Gbps, which is essential for the growing number of cameras and sensors in vehicles for Advanced Driver Assistance Systems (ADAS) and In-Vehicle Infotainment (IVI) applications [3][4] Company Developments - Microchip Technology has achieved significant interoperability with AVIVA Links, marking a pivotal moment for the Automotive SerDes Alliance and signaling market confidence in the ASA-ML standard [3] - AVIVA Links focuses on delivering advanced connectivity and interoperable solutions for next-generation automotive systems, enhancing confidence in ASA-ML adoption among OEMs and Tier 1 suppliers [4] Technological Milestones - The demonstration of seamless connectivity using ASA-ML chipsets from Microchip and AVIVA Links highlights the maturity of the standard, which is stable and compliant across different vendor implementations [6] - The multi-vendor interoperability is expected to accelerate the integration of ASA-ML into upcoming vehicle platforms for applications such as surround view, driver monitoring, and high-resolution displays [7]

Group 1 - Proactive provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2][3] - The news team covers key finance and investing hubs including London, New York, Toronto, Vancouver, Sydney, and Perth [2] - Proactive focuses on medium and small-cap markets while also covering blue-chip companies, commodities, and broader investment stories [2][3] Group 2 - The team delivers news and insights across various sectors including biotech, pharma, mining, natural resources, battery metals, oil and gas, crypto, and emerging technologies [3] - Proactive adopts technology to enhance workflows and improve content production [4][5] - All content published by Proactive is edited and authored by humans, ensuring adherence to best practices in content production and search engine optimization [5]

Core Insights - ClearBridge Investments reported positive returns in global equity markets for Q2 2025, driven by U.S. trade deals and anticipated fiscal stimulus in Europe, which mitigated tariff challenges and geopolitical tensions [1] - The Clearbridge Global Value Improvers Strategy outperformed the MSCI World Value Index, with strong contributions from industrials and IT holdings [1] Company Summary: Microchip Technology Incorporated (NASDAQ:MCHP) - Microchip Technology Incorporated manufactures and distributes smart, connected, and secure embedded control solutions, with a one-month return of 0.32% and a 14.87% decline over the last 52 weeks [2] - As of October 2, 2025, Microchip's stock closed at $66.13 per share, with a market capitalization of $35.689 billion [2] - The company experienced a rise in share price following the release of fourth-quarter fiscal results that exceeded analyst expectations and an increase in first-quarter revenue targets due to strong bookings and inventory reduction [3] Hedge Fund Interest - Microchip Technology is not among the 30 most popular stocks among hedge funds, with 54 hedge fund portfolios holding the stock at the end of Q2, a decrease from 56 in the previous quarter [4] - While Microchip is recognized for its investment potential, certain AI stocks are considered to offer greater upside potential with less downside risk [4]

Group 1 - Microchip Technology Incorporated (NASDAQ:MCHP) is recognized as one of the 11 best semiconductor stocks with significant upside potential [1] - Deca Technologies and Silicon Storage Technology® (SST®), a subsidiary of Microchip, have formed a strategic partnership to develop a non-volatile memory chiplet package focusing on multi-die, modular systems [1][2] - The collaboration combines SST's SuperFlash® embedded flash technology with Deca's M-Series™ fan-out and Adaptive Patterning®, facilitating production, testing, and simulation through Deca's ecosystem of partners [2] Group 2 - Clients will receive comprehensive support from design to prototype manufacturing, which accelerates heterogeneous integration and reduces design cycles [3] - Demand for chiplet-based solutions is increasing as companies seek scalable and cost-efficient designs beyond Moore's Law, according to Microchip's VP Mark Reiten [3] - Microchip Technology is ranked fifth on the list of stocks with the biggest upside potential [3]

Core Insights - Microchip Technology (MCHP) is enhancing its product offerings with the launch of the MCP9604, a single-chip, four-channel thermocouple conditioning Integrated Circuit that simplifies accurate temperature measurement [1][3] - The MCP9604 provides up to ±1.5°C accuracy and supports eight common thermocouple types, operating within a temperature range of -200°C to +1372°C, making it suitable for various applications [2][3] - MCHP's AI coding assistant is improving microcontroller programming efficiency by up to 40%, which is expected to reduce time to market for customers [4][11] Product Development - The MCP9604 is designed to integrate ADCs, cold-junction compensation, and amplifiers, reducing system complexity and eliminating the need for discrete components [1][2] - The device's I2C interface allows for easy integration with microcontrollers, and its use of higher-order NIST ITS-90 equations enhances calibration accuracy [2] Market Position and Performance - MCHP is experiencing strong demand across multiple sectors, including aerospace, defense, AI applications, and network connectivity, which are driving growth [5] - The company anticipates Q2 FY26 sales to reach $1.13 billion, reflecting approximately 5.1% sequential growth, with non-GAAP earnings expected between $0.30 and $0.36 per share [11][12] Competitive Landscape - Despite MCHP's advancements, it faces significant competition from Texas Instruments, NXP Semiconductors, and Analog Devices, all of which are expanding their semiconductor product lines [6] - Texas Instruments reported a revenue increase of 18% in its Analog segment and 10.4% in Embedded Processing, indicating strong market performance [7] - NXP Semiconductors is well-positioned in the automotive and industrial markets with its introduction of advanced microcontrollers [8] - Analog Devices has also expanded its offerings to enhance developer efficiency and security, contributing to its competitive edge [9]

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]