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Microchip Technology Inc

microchip.com

What Do They Do?

Sells mixed-signal microcontrollers, embedded microprocessors and analog components to manufacturers in automotive, industrial, computing and communications markets.

How Do They Make Money?

Mixed-signal microcontrollers are the largest product line; customers generally pay for semiconductor products within 30 days after shipment, while technology licensees pay royalties based on use.

revenue
SegmentShareRevenue
Mixed-signal Microcontrollers
Sold outright

50%
FY2023: 56%
Analog
Sold outright

28%
FY2023: 28%
Other
22%
FY2023: 15%

Who Are Their Customers?

Microchip sells semiconductor products directly to manufacturers and through distributors serving a broad customer base. It also licenses technology to foundries, integrated device manufacturers and design partners.

Customers above 10% of revenue, FY2026
of revenue from one customer
FY2024: 12% from one customer

Do Revenues Turn Into Profits?

Yes. It kept 5 cents of every revenue dollar as net income in FY2026 and turned 18 cents into free cash flow.

Operating income, FY2026
10% of revenue
▲ +65% vs FY2025 ($296.3M, 7%)
Net income, FY2026
5% of revenue
▲ Now profitable vs FY2025 (−$500K, 0%)
Free cash flow, FY2026
18% of revenue
▲ +13% vs FY2025 ($772.1M, 18%)

How Are They Changing?

Since the FY2026 annual report
Latest quarter: Q1 FY2027, the three months to Jun 30, 2026
Revenue
▲ +38%
vs $1.1B in Q1 FY2026
Net income
▲ Now profitable
vs −$18.6M in Q1 FY2026
Mixed-signal Microcontrollers share of revenue vs 49.5% in Q1 FY2026

Shrinking. Revenue fell 31% in 4 years, from $6.8B in FY2022 to $4.7B in FY2026, about 9% a year.

Higher-performance processors The latest report adds high-performance multi-core processors for mission-critical industrial, aerospace, defense and space applications, extending the embedded processor offerings described in the older report.

Revenue over time
Mixed-signal Microcontrollers Analog Other
$10B$5B$0

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