TacticScaleWhat Microchip Technology Does & How It Makes Money (MCHP)
Updated October 2026 · reflects Microchip Technology's latest reported financials
Chipmaker of microcontrollers, analog, FPGA and memory chips for embedded systems. Most revenue comes from selling semiconductor chips (microcontrollers, analog, FPGA, and memory products) to device makers across automotive, industrial, computing, and communications markets.
How Microchip Technology makes money
Most revenue comes from selling semiconductor chips (microcontrollers, analog, FPGA, and memory products) to device makers across automotive, industrial, computing, and communications markets. A smaller Technology Licensing segment earns fees from licensing its SuperFlash memory technology to foundries and chipmakers, with additional income from engineering and manufacturing services.
What Microchip Technology does
Microchip Technology, founded in 1989 and headquartered in Chandler, Arizona, supplies embedded control solutions used in automotive, industrial, computing, communications, lighting, power supply, and motor control applications across the Americas, Europe, and Asia. Its core is a broad microcontroller range spanning 8-bit to 64-bit, complemented by embedded microprocessors, a large analog and interface portfolio (power management, RF, gate drivers, timing, USB, Ethernet, wireless), FPGAs, and serial and parallel memory products. The company operates two segments: Semiconductor Products, which accounts for the bulk of the business, and Technology Licensing, which licenses its SuperFlash embedded flash and non-volatile memory technology to foundries and device makers. It also offers development tools, engineering services, wafer foundry and assembly/test subcontracting, ASICs, timing systems, and products for aerospace applications.
Products & services
- 8/16/32/64-bit microcontrollers
- Embedded microprocessors
- Analog & power management chips
- FPGA products
- Serial EEPROM & flash memory
- SuperFlash technology licensing
What is Microchip Technology worth?
On an owner-earnings DCF, Microchip Technology's most-likely value is about $64 versus a recent price near $76 (15% above fair value). But TacticScale only calls a stock undervalued when the price sits below its conservative no-growth floor (~$28) with a margin of safety — so the honest verdict here is “Fairly priced — no edge.” Fair value earns its keep only at the extremes, not in the wide middle.
Price sits in the normal range — fair value isn't actionable here; it earns its keep only when price drops below the no-growth floor, or runs to roughly double the optimistic case.
Analysis, not advice. Fair value is a margin-of-safety estimate from a deterministic owner-earnings DCF, not a price target or recommendation. See the full breakdown →
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