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Microchip Expands Offering of 8-Bit PIC Microcontrollers

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Sep. 3 2015, Published 2:21 p.m. ET

Top company in the 8-bit microcontroller segment

According to research firm Gartner (IT), Microchip (MCHP) reclaimed the top position in terms of revenue in the 8-bit microcontroller segment in 2014. The company also grew its market share in 8-bit, 16-bit, and 32-bit multipoint control units (or MCUs) and entered the top ten for market share for its 32-bit MCUs. Microchip expanded its offerings in the 8-bit PIC (peripheral interface controllers) microcontrollers segment.

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Silicon Storage Technology strengthens market leadership

A subsidiary of Microchip, Silicon Storage Technology strengthened its market leadership in embedded Flash-based devices. Silicon Storage Technology is expanding its partnership with GlobalFoundries to include an automotive-grade 55nm embedded SuperFlash memory platform. There have been 50 billion devices shipped with SuperFlash technology to date.

Microchip’s August 3, 2015, press release noted, “Microchip’s MOST technology devices continued to win new designs in automotive infotainment networks, with fresh deployments in Volvo’s XC90 and Kia’s K900 models. More than 170 million MOST devices have been installed in 184 car models, since 2001. Additionally, Microchip recently shipped the 25 millionth device from its MOST50 product line, due to the continued deployment by a wide variety of brands from carmakers General Motors Co. (GM) and Toyota Motor Corporation.”

Shareholder value

The revenue growth of Microchip in the last ten years has been 9.40%. Its EBITDA (earnings before interest, tax, depreciation, and amortization) growth and free cash flow growth stand at 3.70% and 5.60%, respectively. In the last 12 months, the company’s revenues, EBITDA, and free cash flow have grown at 7.20%, 0.90%, and 9.30%, respectively.

Microchip comprises 0.05% of the iShares Core S&P 500 ETF (IVV) and 0.25% of the Technology Select Sector SPDR ETF (XLK), respectively.

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