Microchip Technology Explained

Microchip Technology Incorporated is an American publicly traded semiconductor corporation that manufactures microcontroller, mixed-signal, analog, and Flash-IP integrated circuits.

Its corporate headquarters is located in Chandler, Arizona. Its wafer fabs are located in Gresham, Oregon, and Colorado Springs, Colorado. The company's assembly/test facilities are in Chachoengsao, Thailand, and Calamba and Cabuyao, Philippines.

History

Origins

Microchip Technology was founded in 1987 when General Instrument spun off its microelectronics division as a wholly owned subsidiary.^[2] The newly formed company was a supplier of programmable non-volatile memory, microcontrollers, digital signal processors, card chip on board, and consumer integrated circuits. An initial public offering (IPO) later in the year was canceled because of the October 1987 stock market crash.^[3]

Microchip Technology became an independent company in 1989 when it was acquired by a group of venture capitalists led by Sequoia Capital.^[4] In the same year, Microchip Technology announced the release of small, inexpensive 8-bit reduced instruction set computing (RISC) microcontrollers for $2.40 apiece, whereas most RISC microcontrollers were 32-bit devices selling for hundreds of dollars.^[5]

1990-2024

In 1990, 60% of Microchip Technology's sales were from the disc drive industry and the product portfolio relied heavily on commodity EEPROM products.^[6] The company was losing US$2.5 million per quarter, had less than 6 months of cash in reserve, had exhausted lines of credit, and was failing to control expenses. Early in the year, the venture capital investors accepted an offer to sell Microchip Technology to Winbond Electronics Corporation of Taiwan for $15M. Winbond Electronics backed out of the deal after the Taiwanese stock market decreased in May 1990. Vice President of Operations, Steve Sanghi, was named president and chief operating officer of Microchip Technology in 1990. After several quarters of losses, Sanghi oversaw Microchip Technology's transition from selling commodity-based products to specialized chips, such as the RISC technology.

Microchip Technology conducted an IPO in 1993, which Fortune magazine cited as the best performing IPO of the year with a stock appreciation of 500% and over $1bn in market capitalization.^[7] At the end of 2015, Microchip Technology posted its 100th consecutive quarter of profitability.^[8]

In March 2021, Sanghi was replaced as CEO by Ganesh Moorthy.^[9]

2024-present

In March 2024, Microchip furloughed production staff and non-manufacturing employees were forced to take a pay-cut for two weeks.^[10] This was done again in June.^[11] In late November, Moorthy retired as CEO and Steve Sanghi was appointed interim CEO^[12], and was subsequently announced he would continue as CEO and Chairman on a permanent basis on July 2, 2025.^[13]

In early December 2024, Sanghi announced the closure of Fab 2 in Tempe, Arizona and also announced that Microchip would suspend its application for CHIPS and Science Act funding.^{[14] [15]} On February 10, 2025, Microchip announced that they would again furlough employees intermittently throughout the rest of the year.^[16]

Acquisitions

See also: Atmel and Microsemi.

• In 1995, Microchip acquired KeeLoq technology from Nanoteq of South Africa for $10M in cash. Microchip Technology used the purchase to create the Secure Data Products Group.
• On May 24, 2000, Microchip acquired a wafer fab in Puyallup, Washington that was formerly owned by Matsushita Electric Industrial Company.^{[17] [18] [19]} On October 19, 2007, due to the great recession, the facility, known as Fab 3, was sold for $30M from an unsolicited offer.^{[20] [21]}
• On October 27, 2000, Microchip purchased TelCom Semiconductor of Mountain View, California for $300M.^[22]
• In 2002, Microchip acquired a wafer fab in Gresham, Oregon from Fujitsu for $183.5M. This fab became, and still is, Microchip's largest and is known as Fab 4.^[23]
• On October 15, 2008, Microchip acquired Hampshire Company, a company that sold large-format universal touch screen controller electronics and related software.^{[24] [25]}
• On February 20, 2009, Microchip acquired Australia-based HI-TECH Software.^[26]
• On January 11, 2010, Microchip acquired Thomas H. Lee's Sunnyvale, California-based ZeroG Wireless for an undisclosed amount after a year-long partnership. The deal allowed Microchip to provide a Wi-Fi product for their PIC microcontrollers.^{[27] [28] [29]}
• In April 2010, Microchip completed the acquisition of Silicon Storage Technology (SST) from for about $292M. Microchip and Cerberus Capital Management both made offers for the company. Microchip sold several SST flash memory assets back to Bing Yeh, co-founder of SST, to another one his companies the next month.^{[30] [31]}
• In 2012, Microchip acquired German-based Ident Technology AG, California based Roving Networks, and Standard Microsystems Corporation.^{[32] [33] [34] [35]}
• On June 3, 2013, Microchip acquired Novocell Semiconductor, Inc. through its Silicon Storage Technology (SST) subsidiary.^{[36] [37]}
• In 2014, Microchip acquired Supertex, Inc and Belgian-based EqcoLogic on February 10,^{[38] [39] [40] [41]} and Taiwan-based ISSC Technologies on May 22.^{[42] [43]}
• On August 3, 2015, Microchip acquired IC manufacturer Micrel for about $839M.^{[44] [45]}
• In January 2016, Microchip purchased San Jose, California-based Atmel for $3.56bn. JPMorgan Chase advised Microchip while Qatalyst Partners advised Atmel.^{[46] [47] [48] [49]}
• In May 2018, Microchip acquired Microsemi Corporation.^[50]
• In October 2020, Microchip acquired New Zealand-based Tekron International Limited for an undisclosed amount.^[51]
• In April 2024, Microchip acquired both South Korea-based VSI Co. Ltd.^[52] and Neuronix AI Labs.^[53]

Products

Microchip offers 8, 16, and 32-bit microcontrollers including PIC and AVR microcontrollers, microprocessors, analog power management and conversion, CAN and LIN serial communication interface devices, high-voltage MEMS and piezoelectric drivers, ultrasound multiplexers, digital signal controllers, embedded controllers, memory products (including serial EEPROM, serial SRAM, serial flash, serial NvSRAM, serial EERAM, parallel EEPROM, parallel one-time programmable flash, parallel flash and CryptoMemory devices.)^{[54] [55] [56] [57] [58] [59] [60] [61] [62] [63]}

Microchip also offers custom programming, hardware and software development tools, and reference designs.^[64] Available reference designs include complete systems, subsystems or functions which are purpose-built and include design files, software and support.

Microchip crypto element devices that provide authentication, data integrity, and confidentiality in a variety of applications, such as disposables, accessories and nodes; Timing, communication and real-time clock and calendar products;^{[65] [66]} USB products;^[67] Power Management Integrated Circuits (PMICs);^[68] and networking products including Ethernet interface and wireless products.^{[69] [70] [71]}

Product milestones

In April 2009, Microchip Technology announced the nanoWatt XLP microcontrollers, claiming the world's lowest sleep current.^[72] Microchip Technology had sold more than 6 billion microcontrollers as of 2009.^[73] As of 2011, Microchip Technology ships over a billion processors every year. In September 2011, Microchip Technology shipped the 10 billionth PIC microcontroller.^{[74] [75]}

Wafer Fabs

!Plant Name!Location!Status

Fab 1	Chandler, Arizona, United States	Defunct.[76] Closed April 2003.
Fab 2	Tempe, Arizona, United States	Defunct.[77] Closed November 2024.
Fab 3	Puyallup, Washington, United States	Defunct. Sold October 2007[78]
Fab 4	Gresham, Oregon, United States	Open
Fab 5	Colorado Springs, Colorado, United States	Open

See also

• ATtiny microcontroller comparison chart
• AVR microcontrollers
• KeeLoq
• MiWi
• MPLAB devices
• MPLAB
• PIC microcontrollers
• PICkit
• UNI/O

External links

NASDAQ:

Notes and References

1. Web site: Microchip Technology Inc. FY 2025 Annual Report (Form 10-K) . 2025-05-23 . U.S. Securities and Exchange Commission.
2. General Instrument Microelectronics Renamed Microchip Technology Incorporated as Wholly Owned Subsidiary .
3. News: Microchip Technology Names New President . The New York Times. 27 August 1990. Fisher. Lawrence M..
4. Microchip Technology becomes Independent Company .
5. News: Muscular Chips With a Lighter Price . The New York Times. 29 November 1989.
6. Book: Jones . Michael . Sanghi . Steve . Driving Excellence: How The Aggregate System Turned Microchip Technology from a Failing Company to a Market Leader . limited . 2006 . John Wiley & Sons . Hoboken, New Jersey . 3-5. 9780471784845 .
7. Book: Jones . Michael . Sanghi . Steve . Driving Excellence: How The Aggregate System Turned Microchip Technology from a Failing Company to a Market Leader . limited . 2006 . John Wiley & Sons . Hoboken, New Jersey . 8-11. 9780471784845 .
8. Web site: Microchip Technology marks profit milestone: 100 straight quarters . azcentral.com .
9. Web site: 2020-11-06 . Microchip Technology announces CEO Transition . Evertiq . Evertiq . 2025-11-25.
10. Web site: Oregonian/OregonLive . Mike Rogoway The . 2024-01-11 . Computer chip maker announces furloughs at Oregon factory days after landing $72 million from feds . 2025-01-04 . oregonlive . en.
11. Web site: Oregonian/OregonLive . Mike Rogoway The . 2024-05-07 . Microchip will furlough Oregon factory workers again as sales plunge 40% . 2025-01-04 . oregonlive . en.
12. Web site: Microchip Technology (MCHP) Announces Leadership Transition with . 2025-01-04 . www.gurufocus.com . en.
13. Web site: Di Paolo Emilio . Maurizio . 2025-07-09 . Vision, Resilience, and Legacy: Steve Sanghi’s Continued Journey at Microchip . Power Electronics News . Aspencore . 2025-11-25.
14. Web site: Wiles . Russ . Microchip's closing of Tempe fab: What to know about impact on 500 workers . 2025-01-04 . The Arizona Republic . en-US.
15. Web site: Oregonian/OregonLive . Mike Rogoway The . 2024-12-06 . Microchip, closing factory and cutting jobs, steps back from deal for federal expansion subsidies . 2025-01-04 . oregonlive . en.
16. Web site: Oregonian/OregonLive . Mike Rogoway The . 2025-02-10 . Microchip expects intermittent furloughs for Gresham factory workers throughout 2025 . 2025-02-11 . oregonlive . en.
17. Company news; Microchip to buy chip plant from Matsushita . 25 May 2000 . News . Bloomberg . 29 April 2020 . The New York Times.
18. Microchip Technology to acquire Puyallup, Washington, wafer facility . 29 April 2020.
19. Web site: Arizona chip maker buys Puyallup plant . 29 April 2020 . Seattle Daily Journal of Commerce.
20. Microchip Technology Announces the Sale of Fab 3 in Puyallup, Washington . 12 March 2025 . Microchip.
21. Web site: Microchip Unloads Idle Puyallup Plant for $30M . 29 April 2020 . Northwest Innovation.
22. Web site: Microchip to acquire TelCom for $300 million in stock . 30 April 2020 . EE Times. 27 October 2000 .
23. Web site: Microchip to buy Fujitsu fab for $183.5 million Semiconductor Digest . 2025-01-04 . en-US.
24. Web site: Microchip Technology Acquires Hampshire Company . 29 April 2020 . Thomas Publishing Company.
25. Microchip Technology acquires Hampshire Company . 29 April 2020.
26. Web site: Microchip Technology Acquires HI-TECH Software . 26 May 2009 .
27. Web site: Microchip buys ZeroG Wireless . 1 May 2020 . EDN. 11 January 2010 .
28. Web site: Microchip buys ZeroG Wireless . 1 May 2020 . CIOL.
29. Microchip Technology Acquires ZeroG Wireless . 1 May 2020.
30. News: Mark LaPedus . April 8, 2010 . Microchip completes SST acquisition . October 1, 2013 . EE Times.
31. News: April 9, 2010 . Microchip Tech Sews Up Silicon Storage Deal . October 1, 2013 . New York Times Deal Book.
32. Web site: Clarke . Peter . Microchip tips gesture firm buy in profitable quarter . 13 April 2020 . EETimes. 2 May 2012 .
33. Web site: Comerford . Richard . 21 August 2014 . The Story behind the Story: Microchip Technology's MGC3130 e-field 3D gesture controller . 13 April 2020 . Electronic Products.
34. Web site: 19 April 2012 . Microchip Technology Acquires Roving Networks . 13 April 2020 . Businesswire.
35. Microchip Technology and SMSC announce the completion of the acquisition of SMSC by Microchip Technology . 2025-03-12.
36. Web site: 3 June 2013 . Microchip Acquires Novocell Semiconductor . 13 April 2020 . AZ Big Media.
37. Microchip Technology Subsidiary SST and Novocell Semiconductor Announce Acquisition of Novocell by SST . 13 April 2020 . Businesswire.
38. Microchip Technology Acquires EqcoLogic . 9 April 2020 . Business Wire.
39. Web site: Microchip Acquires EqcoLogic . 9 April 2020 . Yahoo! Finance.
40. Microchip Technology Acquires EqcoLogic . 9 April 2020.
41. Microchip Technology and Supertex announce the completion of the acquisition of Supertex by Microchip Technology . 12 March 2025.
42. Microchip Technology announces acquisition of ISSC Technologies . 12 March 2025.
43. Microchip Technology Completes ISSC Technologies Tender Offer . 12 March 2025.
44. Web site: Microchip Technology Completes Micrel Acquisition . 8 April 2020 . Power Electronics. 12 August 2015 .
45. Microchip Technology and Micrel announce the completion of the acquisition of Micrel by Microchip Technology . 12 March 2025.
46. News: January 20, 2016 . Microchip To Buy Atmel in Latest Semiconductor Deal . Fortune.
47. Web site: Assis . Claudia . Microchip Technology buys chip maker Atmel in $3.56 billion deal . 2016-01-21 . MarketWatch. 19 January 2016 .
48. Web site: By . 20 January 2016 . Microchip To Acquire Atmel for $3.56 Billion . 2016-01-21 . Hackaday.
49. News: Picker . Leslie . 2016-01-19 . Microchip Technology to Buy Atmel for Nearly $3.6 Billion . 2016-01-21 . The New York Times . 0362-4331.
50. Microchip Technology to acquire Microsemi . 2025-03-12 .
51. Web site: Electronics Supply Chain Solutions | Sourceability .
52. Web site: 2024-04-15 . Microchip Acquires ADAS and Digital Cockpit Connectivity Pioneer VSI Co. Ltd. to Extend Automotive Networking Market Leadership . 2 June 2024 . Engineering Update.
53. News: O'Shea . Dan . 23 April 2024 . Microchip buys Neuronix AI Labs, matching FPGAs, computer vision . Fierce Electronics.
54. Web site: Focus Product Selector Guide . 14 April 2020 . Microchip Technology.
55. Web site: Embedded Security Solutions . 14 April 2020.
56. Web site: 16-bit PIC® Microcontrollers Family Overview . 7 April 2020.
57. Web site: December 2006 . Product of the Year Story Behind the Story: Microchip Technology PIC24F/H 16-bit microcontrollers . 20 April 2020 . Electronic Products.
58. Web site: Industry's Broadest and Most Innovative 32-bit Microcontroller (MCU) Portfolio . 8 April 2020.
59. Web site: Microchip Technology Extends PIC Microcontroller Line to 32 Bits With New PIC32 Family . 14 March 2025 . Embedded Computing Design.
60. Web site: Mixed-Signal, Linear, Interface and Power Products to Complete Any System . 14 April 2020.
61. Web site: PIC24F 16-bit Microcontroller . 20 April 2020.
62. Web site: Focus Product Selector Guide . 5 May 2020.
63. Web site: World's Most Reliable Memory . 16 April 2020.
64. Web site: Development Tools . 7 April 2020.
65. Web site: Clock and Timing . 14 April 2020.
66. Web site: A Feature-Rich, Low-Cost Timekeeping Solution . 17 March 2025.
67. Web site: Microchip's USB Portfolio . 17 March 2025.
68. Web site: PMIC - Power Management ICs Microchip Technology . 2022-11-27 . www.microchip.com.
69. Web site: Microchip's Ethernet Portfolio . 16 April 2020.
70. Web site: Wireless Connectivity Solutions . 16 April 2020.
71. Web site: Microchip Technology Wireless Connectivity . 20 April 2020.
72. Web site: Quick . Darren . April 30, 2009 . nanoWatt XLP Microcontrollers claim world's lowest sleep current . February 9, 2013 . www.gizmag.com . en.
73. Web site: Brian Santo . May 2009 . 25 Microchips That Shook the World . dead . https://web.archive.org/web/20090627040512/http://www.spectrum.ieee.org/semiconductors/processors/25-microchips-that-shook-the-world/0 . June 27, 2009 . 2012-04-01 . IEEE Spectrum.
74. Web site: Microchip Technology Delivers 10 Billionth PIC® Microcontroller . dead . https://web.archive.org/web/20140102201217/http://www.microchip.com/pagehandler/en-us/press-release/microchip-technology-delivers-10-billionth-pic-mic.html . 2014-01-02 . 2011-11-08.
75. Microchip Technology Delivers 10 Billionth PIC® Microcontroller to Samsung Electronics Co. . 20 April 2020 . Businesswire.
76. Web site: EETimes . 2003-04-07 . Microchip shuts down fab, lowers forecast-again . 2025-01-04 . EE Times.
77. Web site: Bradley . Ben . 2024-12-05 . Semiconductor factory to close in Tempe; hundreds of employees impacted . 2025-01-04 . www.azfamily.com . en.
78. https://www.nwinnovation.com/microchip_unloads_idle_puyallup_plant_for_3_m/s-0011932.html Microchip Unloads Idle Puyallup Plant for $30M