{"id":32469,"date":"2025-04-03T13:56:00","date_gmt":"2025-04-03T05:56:00","guid":{"rendered":"https:\/\/www.granitefirm.com\/blog\/us\/?p=32469"},"modified":"2025-07-09T09:38:34","modified_gmt":"2025-07-09T01:38:34","slug":"microchip-microcontrollers","status":"publish","type":"post","link":"https:\/\/www.granitefirm.com\/blog\/us\/2025\/04\/03\/microchip-microcontrollers\/","title":{"rendered":"How does Microchip, a specialist in microcontrollers, memory and analogs, make money?"},"content":{"rendered":"\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_83 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #ffffff;color:#ffffff\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #ffffff;color:#ffffff\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/04\/03\/microchip-microcontrollers\/#Company_Profile\" >Company Profile<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/04\/03\/microchip-microcontrollers\/#Introduction\" >Introduction<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/04\/03\/microchip-microcontrollers\/#History\" >History<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/04\/03\/microchip-microcontrollers\/#Areas_of_Expertise\" >Areas of Expertise<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/04\/03\/microchip-microcontrollers\/#Initial_Public_Offering\" >Initial Public Offering<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/04\/03\/microchip-microcontrollers\/#Operations\" >Operations<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/04\/03\/microchip-microcontrollers\/#Revenue_Sources\" >Revenue Sources<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/04\/03\/microchip-microcontrollers\/#Key_Products\" >Key Products<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/04\/03\/microchip-microcontrollers\/#Competitors\" >Competitors<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/04\/03\/microchip-microcontrollers\/#Key_acquisitions\" >Key acquisitions<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/04\/03\/microchip-microcontrollers\/#Cpital_market_performance\" >Cpital market performance<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/04\/03\/microchip-microcontrollers\/#Market_cap\" >Market cap<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/04\/03\/microchip-microcontrollers\/#Market_Valuation\" >Market Valuation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/04\/03\/microchip-microcontrollers\/#Cash_dividend_rate\" >Cash dividend rate<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/04\/03\/microchip-microcontrollers\/#Stock_price_performance\" >Stock price performance<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/04\/03\/microchip-microcontrollers\/#Intrinsic_Value\" >Intrinsic Value<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/04\/03\/microchip-microcontrollers\/#Financial_health\" >Financial health<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/04\/03\/microchip-microcontrollers\/#Related_articles\" >Related articles<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Company_Profile\"><\/span>Company Profile<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Introduction\"><\/span>Introduction<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Microchip Technology (ticker: MCHP) is an American microcontroller, memory and analog chip manufacturer.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"History\"><\/span>History<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>In 1969, <a href=\"https:\/\/www.vishay.com\/\" target=\"_blank\" rel=\"noopener\">General Instrument (ticker: VSH)<\/a> spun off its microelectronics division and established a wholly owned parent company. In 1989, the subsidiary was acquired by a group of venture investors and Microchip Technology became an independent company.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Areas_of_Expertise\"><\/span>Areas of Expertise<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Microchip Technology develops, manufactures and markets smart, connected and secure embedded control solutions in the Americas, Europe and Asia.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Initial_Public_Offering\"><\/span>Initial Public Offering<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Microchip Technology went public on March 19, 1993. It is up more than 500% for the year and has a market cap of more than $1 billion. The company&#8217;s initial public offering (IPO) was named one of the best performing companies of the year by Fortune magazine.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Operations\"><\/span>Operations<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Revenue_Sources\"><\/span>Revenue Sources<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Microchip Technology&#8217;s revenue includes its Technology Licensing segment, which had revenue of $103.9 million, and its Semiconductor Products segment, which had revenue of $5.39 billion.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Key_Products\"><\/span>Key Products<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Its products include microcontrollers (PIC microcontrollers, dsPIC \/ PIC24, PIC32), serial EEPROM, serial SRAM, KEELOQ components, radio frequency (RF) components, thermal components, power and battery management analog components, and linear , interfaces and mixed-signal components. Other interface components include USB, ZigBee\/MiWi, CANbus and Ethernet.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Competitors\"><\/span>Competitors<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The main competitors are Analog Devices, Infineon Technologies, NXP Semiconductors, Renesas Electronics, STMicroelectronics and Texas Instruments.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Key_acquisitions\"><\/span>Key acquisitions<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>In April 2010, Microchip Technology acquired Silicon Storage Technology (SST).<\/li>\n\n\n\n<li>In May 2015, Micrel was acquired for $14.00 per share.<\/li>\n\n\n\n<li>In January 2016, Microchip Technology announced the acquisition of Atmel for US$3.56 billion.<\/li>\n\n\n\n<li>In March 2018, Microchip Technology announced that it would acquire Microsemi for US$8.35 billion. Together with Microsemi&#8217;s debts and investments, the total acquisition price reached US$10.15 billion.<\/li>\n\n\n\n<li>In October 2020, it announced the acquisition of New Zealand-based Tekron International Limited. Founded in 2002, Tekron specializes in manufacturing GPS and precision timekeeping devices.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Cpital_market_performance\"><\/span>Cpital market performance<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Market_cap\"><\/span>Market cap<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>As of December 24, 2024, the company&#8217;s market value is approximately US$31.45 billion, which is considered a medium-sized listed company in the U.S. stock market.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Market_Valuation\"><\/span>Market Valuation<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>As of December 24, 2024, the company&#8217;s price-to-earnings ratio was 40.84, which is not cheap.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Cash_dividend_rate\"><\/span>Cash dividend rate<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>As of December 24, 2024, the company&#8217;s cash dividend yield was 3.11%, which is considered a very high cash dividend distribution company in the U.S. stock market.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Stock_price_performance\"><\/span>Stock price performance<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>As of December 24, 2024:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The company&#8217;s shares have fallen 35.87% over the past year.<\/li>\n\n\n\n<li>The company&#8217;s stock price has only risen 11.04% in the past five years.<\/li>\n\n\n\n<li>The company&#8217;s stock price has risen by 17,645.45% since its listing.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Intrinsic_Value\"><\/span>Intrinsic Value<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Microchip Technology Inc.&#8217;s stock was trading at $58.56 on December 24, 2024, which is well below its estimated fair value of $113.09, indicating that the company&#8217;s stock price may be undervalued based on a discounted cash flow analysis.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Financial_health\"><\/span>Financial health<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Despite high debt levels and a decline in profit margins from 28.1% to 14.2%, earnings are expected to grow at an annual rate of 31.6%, beating the U.S. market&#8217;s expected growth of 15.3%. The latest product innovations in touch controllers and FPGA solutions highlight strategic advancements in key technology areas.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"199\" height=\"47\" src=\"https:\/\/www.granitefirm.com\/blog\/us\/wp-content\/uploads\/sites\/2\/2024\/12\/MicrochipLogo.gif\" alt=\"Microchip\" class=\"wp-image-32471\"\/><figcaption class=\"wp-element-caption\">credit: Wiki<\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Related_articles\"><\/span>Related articles<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/04\/03\/microchip-microcontrollers\/\">How does Microchip, a specialist in microcontrollers, memory and analogs, make money?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/07\/08\/astera-labs-make-money\/\">How Astera Labs, AI high-speed transmission expert, make money? <\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/04\/17\/how-on-make-money\/\">How does ON Semiconductor make money? Experts in power and analog signal processing and sensor<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/11\/22\/texas-instruments-bio\/\" target=\"_blank\" rel=\"noreferrer noopener\">How does Texas Instruments make money? Amazing long term capital reward and company net profit margin!<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/06\/08\/monolithic-power-systems\/\" target=\"_blank\" rel=\"noreferrer noopener\">Monolithic Power Systems, a new force in power management expertise<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/09\/25\/the-lucrative-semiconductor-industry\/\" target=\"_blank\" rel=\"noreferrer noopener\">The lucrative semiconductor supply chain<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/01\/25\/global-semiconductor-chip-market-in-detail\/\" target=\"_blank\" rel=\"noreferrer noopener\">Global semiconductor chip market in detail, big dominators and markets<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/05\/07\/semiconductor-investment\/\" target=\"_blank\" rel=\"noreferrer noopener\">6 common wrong semiconductor investment myths<\/a>&#8220;<\/li>\n<\/ul>\n\n\n\n<p><em><strong>Disclaimer<\/strong><\/em><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><em>The content of this site is the author\u2019s personal opinions and is for reference only. I am not responsible for the correctness, opinions, and immediacy of the content and information of the article. Readers must make their own judgments.<\/em><\/li>\n\n\n\n<li><em>I shall not be liable for any damages or other legal liabilities for the direct or indirect losses caused by the readers&#8217; direct or indirect reliance on and reference to the information on this site, or all the responsibilities arising therefrom, as a result of any investment behavior.<\/em><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Microchip&#8217;s revenue source includes its Technology Licensing segment, which had revenue of $103.9 million, and its Semiconductor Products segment, which had revenue of $5.39 billion.<\/p>\n","protected":false},"author":1,"featured_media":32471,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[110],"tags":[709,1350],"class_list":["post-32469","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-semiconductor","tag-mchp","tag-vsh"],"_links":{"self":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts\/32469","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/comments?post=32469"}],"version-history":[{"count":11,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts\/32469\/revisions"}],"predecessor-version":[{"id":37306,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts\/32469\/revisions\/37306"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/media\/32471"}],"wp:attachment":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/media?parent=32469"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/categories?post=32469"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/tags?post=32469"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}