Nasdaq 100 · MCU/analog · auto & industrial
Microchip Technology
A broad-line semiconductor maker spanning microcontrollers (MCU ~53%), analog (~29%) and FPGA, with FY2026 revenue of $4.71B (+7.1%, inventory normalizing from 251 to 185 days as all lines and geographies rebound). Automotive and industrial are its core customers, so results hinge on those two end markets' inventory cycles, while its new growth is a datacenter connectivity/timing unit ($0.3B in 2025 to ~$0.5B in 2026). It mixes in-house fabs with TSMC outsourcing for capacity flexibility.
MCHP Updated Jul 12, 2026 1 AI consumers· 1 recurring
Per the valuechain.wiki graph, Microchip Technology is directly linked to 1 companies (1 supply, 0 revenue relationships) and reaches 35 companies within two hops; the links are backed by 4 dated sources, 2 of them primary filings (as of 2026-07-12).
Financials & Segments
- Total revenue · FY2026 revenue $4,713.1M (+7.1%, rebound after destocking)
- Customer concentration · Automotive/industrial led; datacenter growing.
- Segments · MCU (53%) · Analog (29%) · FPGA/memory/other
Revenue from
- Automotive electronics · automotive (MCU · analog) High confidence
Supplies automotive MCUs, analog and power chips — structural demand as electrification and ADAS raise chip content per car, but results tie directly to the automaker inventory and production cycle. FY2026 group revenue rebounded to $4,713.1M (+7.1%) as destocking ended, with all product lines and geographies up; foreign sales are ~75%.Confirms EN Microchip Technology (SEC 10-K) Published May 21, 2026: Microchip Technology — Form 10-K (FY2026)Confirms KO Stockplus Published Jan 1, 2026: Microchip: the semiconductor supermarket (MCU 53%, analog 29%) - Distribution channel (Arrow Electronics 12% & others; ~101,000 customers) High confidence
About 47% of FY2026 sales went through distributors (53% direct) — the largest distributor, Arrow Electronics, was 12% of sales (10% in FY2025), the only customer above 10%; otherwise no customer or distributor exceeds 10% across ~101,000 customers, a diversified base. Distributor inventory levels are a swing factor for quarterly sales.Confirms EN Microchip Technology (SEC 10-K) Published May 21, 2026: Microchip Technology — Form 10-K (FY2026)Mentions EN KeyBanc Published May 8, 2026: Microchip analyst consensus (Buy, avg ~$114; KeyBanc Overweight $135, Morgan Stanley $94) - Data centers (connectivity · timing) Medium confidence
Supplies datacenter connectivity, timing and memory parts (a $0.3B+ unit) — the new-growth axis diversifying away from automotive/industrial, where AI-infrastructure build-outs lift its revenue. - Industrial · embedded (MCU) Medium confidence
Supplies MCUs to industrial automation and embedded devices — a large revenue axis and the demand line most sensitive to the inventory cycle. FY2026 MCU revenue rose 4.7% and analog 14.9% as demand recovered, with distributor days of inventory normalizing from 33 to 26 days, supporting the trough-passing thesis.Confirms EN Microchip Technology (SEC 10-K) Published May 21, 2026: Microchip Technology — Form 10-K (FY2026)Confirms KO Stockplus Published Jan 1, 2026: Microchip: the semiconductor supermarket (MCU 53%, analog 29%)
Pays to
- TSMC Medium confidence
A mixed-fab structure outsourcing some products to TSMC and other external foundries — ~65% of FY2026 sales came from products made at outside foundries (all 300mm plus some 200/150mm specialty processes), giving capacity flexibility alongside in-house fabs but exposing some leading/specialty processes to foundry capacity, pricing and geopolitical risk.Confirms EN Microchip Technology (SEC 10-K) Published May 21, 2026: Microchip Technology — Form 10-K (FY2026)Confirms KO Stockplus Published Jan 1, 2026: Microchip: the semiconductor supermarket (MCU 53%, analog 29%) - in-house fab & back-end (undisclosed) Low confidence
In-house wafer fabs, assembly and test are the cost/supply axis — securing cost competitiveness, supply stability and IP security for mature processes, but falling utilization becomes a fixed-cost (underutilization) burden. In FY2026 ~67% of assembly and ~69% of test were internal, and Fab 4 (Oregon) expansion and capital investment were paused through FY2027 in response to soft demand.Confirms EN Microchip Technology (SEC 10-K) Published May 21, 2026: Microchip Technology — Form 10-K (FY2026)
Investments
- Owned-fab vertical integration & capital allocation (Fab 4 pause, dividends) High confidence
Ownership of wafer fabs, assembly and test is the core capital investment behind its cost edge and supply resilience — the basis for being one of the lowest-cost producers in embedded control — though it throttles capacity investment in soft demand (Fab 4 Oregon expansion paused through FY2027). Capital allocation tilts to shareholder return over reinvestment: FY2026 common dividends $984.0M (cumulative $8.61B) and preferred dividends $108.5M.Confirms EN Microchip Technology (SEC 10-K) Published May 21, 2026: Microchip Technology — Form 10-K (FY2026)
Value-chain ripple (2 tiers)
Following node-to-node links up to 2 tiers; each firm is shown once, at its nearest tier.
| Company | Chain | '21 | '22 | '23 | '24 | '25 | YTD |
|---|---|---|---|---|---|---|---|
| Microchip Technology | node | +27.5 | -18 | +30.9 | -35 | +14.6 | +40.6 |
| TSMC | benef1 | +12.1 | -36.7 | +42.3 | +92.6 | +55.9 | +43.6 |
| SUMCO Corporation | benef2 | -4.3 | -3.9 | +21.3 | -48.1 | +41.7 | +225.8 |
| GlobalWafers | benef2 | +26.9 | -29.9 | +14.3 | -39 | +48.9 | +171.6 |
| Applied Materials | benef2 | +83.6 | -37.5 | +68 | +1.1 | +59.6 | +135 |
| Lam Research | benef2 | +53.7 | -40.7 | +88.6 | -6.8 | +139.2 | +105 |
| Onto Innovation | benef2 | +112.9 | -32.7 | +124.6 | +9 | -5.3 | +103.6 |
| KLA | benef2 | +68 | -11.2 | +56 | +9.4 | +94.5 | +91 |
| SCREEN Holdings | benef2 | +40.7 | -13.2 | +220.1 | -24.1 | +84.9 | +86.3 |
| Teradyne | benef2 | +36.8 | -46.3 | +24.8 | +16.5 | +54.4 | +85.9 |
| Resonac | benef2 | -2.6 | -4 | +37.5 | +30.3 | +137.9 | +80.4 |
| Tokyo Electron (TEL) | benef2 | +40.4 | -14.5 | +89.8 | -4.4 | +61.6 | +78.2 |
| Qnity Electronics | benef2 | · | · | · | · | · | +76.3 |
| Entegris | benef2 | +44.6 | -52.5 | +83.5 | -17.1 | -14.6 | +72.8 |
| ASML | benef2 | +64.1 | -30.5 | +39.9 | -7.7 | +55.8 | +68.6 |
| Global Unichip | benef2 | +21.4 | +67.6 | +99.4 | -13.7 | +101.4 | +66.4 |
| BESI | benef2 | +33.7 | -6.1 | +121.8 | -9.3 | +35 | +56.2 |
| Fujimi Incorporated | benef2 | +64.7 | -1.6 | +40.4 | -24.2 | +28.4 | +54.6 |
| Shin-Etsu Chemical | benef2 | +6.3 | +3.1 | +57.8 | -15.6 | +7.6 | +44 |
| Tokyo Ohka Kogyo (TOK) | benef2 | -2.7 | -3 | +63.8 | +4.3 | +111.5 | +42.9 |
| Ebara | benef2 | +58.1 | +2.3 | +76.1 | +41 | +84 | +32.3 |
| ASM International | benef2 | +44.2 | +2.9 | +68.7 | +10.3 | +25.9 | +28.8 |
| Linde | benef2 | +33.4 | -4.4 | +27.7 | +3.2 | +3.2 | +25.1 |
| Cadence Design Systems | benef2 | +36.6 | -13.8 | +69.6 | +10.3 | +4 | +22.9 |
| Lasertec | benef2 | +78.9 | +2.4 | +57 | -60.6 | +138.9 | +22.4 |
| Advantest | benef2 | +17 | -2.3 | +155.7 | +49.5 | +196 | +17.1 |
| Air Liquide | benef2 | +14.1 | +7.9 | +20.9 | +8.5 | -4.8 | +12.5 |
| Disco Corporation | benef2 | -6.6 | +27.7 | +218.5 | +11.6 | +49.6 | +10.2 |
| EO Technics | benef2 | +7.6 | -28.2 | +130.5 | -16.2 | +163.2 | +0.7 |
| HPSP | benef2 | · | · | +216.5 | -30.4 | +54.7 | -4.5 |
| Synopsys | benef2 | +42.1 | -13.4 | +61.3 | -5.7 | -3.2 | -5.2 |
| Photronics | benef2 | +68.9 | -10.7 | +86.4 | -24.9 | +35.8 | -6.6 |
| Leeno Industrial | benef2 | +21 | -5.3 | +18.3 | +9.5 | +150.1 | -30.3 |
YTD as of 2026-07-10 · source: Yahoo Finance
The thesis is the automotive/industrial chip inventory cycle passing its trough plus datacenter new growth. As a broad-line maker of MCUs (~53%), analog (~29%) and FPGA concentrated in automotive and industrial, it is a cyclical whose results rebound once destocking ends. The new growth is its datacenter connectivity/timing unit, rising from $0.3B in 2025 to ~$0.5B in 2026 as it absorbs AI-infrastructure demand. Mixing in-house fabs with TSMC outsourcing gives capacity flexibility, but revenue skewed to automotive and industrial means results swing with those two end markets' cycles.
Analysis generated from returns as of 2026-07-09Analyst ratings
Consensus: Buy 2 · Hold 1 · Sell 0 · Avg. target $108 · Price $88.59 (07-10) · Upside +22%
| Broker | Rating | Target | Published | |
|---|---|---|---|---|
| Mizuho Securities · Vijay Rakesh | Buy | $112 | Jun 29, 2026 | Report ↗ |
| Wells Fargo · Joseph Quatrochi | Hold | $95 | Jun 9, 2026 | Report ↗ |
| Evercore ISI · Mark Lipacis | Buy | $117 | Jun 4, 2026 | Report ↗ |
As the MCU inventory correction unwinds, consensus is Buy (average target near $114), with Mizuho and Evercore at Buy and Wells Fargo at Hold.