Microchip Technology Revenue, Net Income & 10-K Summary

What the company does

Develops, manufactures, and sells embedded control solutions that are smart, connected, and secure.
Offers a Total System Solution (TSS) combining hardware, software, and services to help customers increase revenue, reduce costs, and manage risks.
Focus areas include mixed-signal microcontrollers, microprocessors, analog, FPGAs, data center and networking, and memory products.
Entered the 64-bit mixed-signal microprocessor market in July 2024 with the PIC64 family of high-performance multi-core 64-bit RISC‑V processors for industrial, aerospace/defense/space, and other demanding applications. The PIC64 family integrates networking, virtualization support, AI/ML acceleration, security, and high-speed networking to handle mixed-criticality workloads (real-time determinism plus Linux support).

Mixed-Signal Microcontrollers: Proprietary 8-, 16-, and 32-bit devices with extensive analog/mixed-signal functionality, plus 64-bit PIC64 microprocessors. Target applications include automotive, industrial, computing, communications, power, motor control, HMI, security, and connectivity.
Analog: Power management, linear, high-voltage, RF, gate drivers, safety, timing, and USB/Ethernet/wireless interfaces, plus related components.
FPGAs: Mid-range, low-power FPGAs with security features for edge AI, industrial, automotive, defense, aviation, space, and communications.
Memory: EEPROMs, Serial/Parallel Flash, Serial SRAM, EERAM; licensing of SuperFlash memory technology and related IP.
Data Center, Memory, and Networking: Storage controllers (Adaptec, Microsemi), memory controllers (CXL/PCIe), and Switchtec PCIe switches for high-speed interconnect and data-center workloads.
Licensing and Services: Revenue from licensing SuperFlash and other technologies, engineering services, and IP-related activities.
Development Tools: Toolchains and development boards supporting firmware and hardware design for mixed-signal MCUs, FPGAs, and microprocessors.

Owns wafer fabrication and assembly/test facilities in multiple locations:
- Fab 4, Gresham, Oregon — wafer fabrication, R&D, warehousing; 826,500 sq ft
- Fab 5, Colorado Springs, Colorado — wafer fabrication, test, R&D; 580,000 sq ft
- Other facilities in Chandler (AZ), Tempe (AZ; Fab 2 held for sale since Dec 2024, sale completed May 2025), and sites in the Philippines, Thailand, France, Ireland, Germany, the U.K., India, and the U.S.
Fab 2 (Tempe, AZ) classified as held for sale as of March 31, 2026.
Supplemental reliance on third-party wafer foundries and contract assembly/test:
- About 65% of net sales in fiscal 2026 were produced at outside wafer foundries; ~35% were produced at company U.S. wafer facilities.
- Approximately 33% of assembly and 31% of test requirements were performed by third-party contractors in fiscal 2026 (versus 33% and 33% in fiscal 2025).
- About 67% of assembly and 69% of test were performed in internal facilities in fiscal 2026.
Ongoing capacity expansion paused during fiscal 2024–2027, with plans to resume as needed to support growth. Manufacturing footprint includes Bangkok-area and other international locations for assembly/test and R&D.

Serves approximately 101,000 unique customers worldwide.
Sales mix of direct and distributor channels:
- In fiscal 2026, about 47% of net sales were through distributors and 53% were direct.
- Arrow Electronics, the largest distributor, accounted for 12% of net sales in fiscal 2026 and 10% in fiscal 2025; other distributors each accounted for less than 10% of net sales.
Revenue visibility influenced by “turns orders” (orders shipped in the same quarter) and long-term supply agreements (LTSA); LTSA capacity prioritization does not guarantee supply.

Global workforce of approximately 17,900 employees.
Emphasizes a values-based culture, continuous improvement, and training and development across management, engineering, manufacturing, and sales roles.

Indebtedness: $5.54 billion principal outstanding as of March 31, 2026.
- Senior Notes: $3.00 billion
- Convertible Debt: $2.19 billion
- Revolving Credit Facility: up to $2.25 billion (no borrowings outstanding as of March 31, 2026)
- Commercial Paper: $0.349 billion outstanding
Goodwill and intangibles (as of March 31, 2026):
- Goodwill: $6.70 billion
- Net intangible assets: $2.03 billion
Manufacturing and supply notes:
- 35% of sales from products produced at U.S. wafer fabrication facilities; 65% from outside foundries.
- 75% of net sales from foreign customers in fiscal 2026 (including 18% in China and 15% in Taiwan).
R&D and product development include ongoing transition to more advanced process technologies and investments in AI-enabled capabilities.

The PIC64 64-bit mixed-signal microprocessor family extends the company’s 64-bit offerings into industrial, aerospace/defense, and space markets, with features for AI/ML acceleration, security, virtualization, and Linux-capable environments.
The company combines vertical integration (own fab/assembly/test facilities in the U.S. and abroad) with outsourcing to external foundries and contract manufacturers to balance cost, capacity, and supply resilience.
The business maintains a broad, globally diversified customer base across many end markets, with a substantial portion of revenue tied to distributor channels and government- or defense-related programs in some cases.