Microchip Technology (MCHP) FY2026 results: revenue $4.7 billion, up 7.1% on the year

Microchip Technology develops, manufactures and sells embedded control products, and it has over 35 years of history. It calls its approach a Total System Solution, a combination of hardware, software and services meant to supply a large portion of the silicon a customer needs in one application. The product lines are general purpose and specialised mixed analog-and-digital microcontrollers, microprocessors, analog, field programmable gate arrays, data centre, networking and memory. End markets are automotive, aerospace and defence, communications, consumer appliances, data centres and computing, and industrial.

What an embedded control system is

The filing sets out the ground its products sit on. A mixed analog-and-digital microcontroller is a self-contained computer on a chip, holding a central processing unit, usually on-board non-volatile memory for the program, random access memory for data, and analog and digital input and output peripherals. A complete embedded control system usually adds application-specific software plus analog, power, mixed analog-and-digital, timing, connectivity, security and non-volatile memory parts such as EEPROMs and Flash. Manufacturers use these systems to differentiate products, replace less efficient electromechanical controls, cut the number of components, reduce energy consumption, connect products to other devices, add security and shorten time to market.

The products

Microcontrollers are the core. The company targets the 8-bit, 16-bit and 32-bit microcontroller markets and the 32-bit and 64-bit embedded microprocessor markets, and it entered the 64-bit market in July 2024 with the PIC64 family of multi-core RISC-V processors for mission-critical work in industrial, aerospace, defence and space, integrating networking, virtualisation support, AI and machine learning acceleration and security. It also makes specialised microcontrollers for automotive, industrial, computing, communications, power supplies, motor control, human machine interface, security and wired and wireless connectivity.

For data centres and enterprise infrastructure there are storage controllers, memory controllers and switches. The storage controller range runs under the Adaptec and Microsemi brands and covers SAS and SATA expanders and accelerators for SAS, SATA and NVMe connectivity, data protection and workload offload. The memory controller range covers Compute Express Link and PCIe memory expansion and management for disaggregated and scalable memory. The switch and retimer range covers PCIe Gen 3 through Gen 6, including Switchtec branded products, for interconnect, waveform conditioning and fabric expansion.

The analog line covers power management, linear, mixed analog-and-digital, high voltage, thermal management, discrete diodes and MOSFETs, radio frequency, gate drivers, safety, security, timing, application specific standard products, USB, Ethernet, wireless and other interface products. It is sold both into the existing microcontroller and FPGA customer base and to customers using other suppliers' parts.

The other line holds the field programmable gate arrays, royalties from licences of SuperFlash and other technologies, sales of intellectual property, engineering service fees, memory products, timing systems, manufacturing services covering wafer foundry and assembly and test subcontracting, legacy application specific integrated circuits and aerospace products. The FPGA portfolio is mid-range and low-end, and the filing points to low power consumption, defence grade security features and reliability, sold into industrial, automotive, defence, aviation, space and communications.

Manufacturing

Fab 4 in Gresham, Oregon produces 8-inch wafers on predominantly 0.11 micron to 0.5 micron processes. Fab 5 in Colorado Springs, Colorado makes discrete and specialty products plus a lower volume of standard products on 6-inch wafers, and in February 2023 the company announced a plan to expand silicon carbide and silicon capacity there including 8-inch wafers. Expansion and capital equipment investment at both was paused in the fourth quarter of fiscal 2024 through fiscal 2027, with select investments still being made, and the company states it plans to resume as required to support growth.

Assembly and test run at facilities around the world. During fiscal 2026 the company added capability at its Thailand and Philippines sites, and approximately 67% of assembly requirements and approximately 69% of test requirements were performed internally, with third-party contractors taking the balance.

How it is sold

Products are sold worldwide mainly through direct sales personnel and distributors, reaching approximately 101,000 unique customers. The direct force covers strategic accounts across three geographic markets, the Americas, Europe and Asia, with sales and technical support centres in major cities in all three. Field application engineers give technical help to customers and run training for the rest of the sales team, along with seminars, workshops and online webcasts. A separate licensing division has its own sales, technology, design, product, test and reliability staff supporting licensees.

From Microchip Technology's annual report on Form 10-K for the year ended 31 March 2026. The filing

Written from the 10-K filed 21 May 2026: read the full 10-K.