MIRA INFORM REPORT

Report Date :

18.10.2012

IDENTIFICATION DETAILS

Name :	MICROCHIP TECHNOLOGY INC.

Registered Office :	2355 West Chandler Blvd., Chandler, AZ 85224-6199

Country :	United States

Financials (as on) :	31.03.2012

Year of Establishment :	1989

Legal Form :	Public Parent Company

Line of Business :	develops and manufactures specialized semiconductor products used by its customers for a range of embedded control applications

No. of Employees :	6,923 employees

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large

Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear

NOTES:

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – June 30^th, 2012

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

United States

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

United States - ECONOMIC OVERVIEW

The US has the largest and most technologically powerful economy in the world, with a per capita GDP of $48,100. In this market-oriented economy, private individuals and business firms make most of the decisions, and the federal and state governments buy needed goods and services predominantly in the private marketplace. US business firms enjoy greater flexibility than their counterparts in Western Europe and Japan in decisions to expand capital plant, to lay off surplus workers, and to develop new products. At the same time, they face higher barriers to enter their rivals' home markets than foreign firms face entering US markets. US firms are at or near the forefront in technological advances, especially in computers and in medical, aerospace, and military equipment; their advantage has narrowed since the end of World War II. The onrush of technology largely explains the gradual development of a "two-tier labor market" in which those at the bottom lack the education and the professional/technical skills of those at the top and, more and more, fail to get comparable pay raises, health insurance coverage, and other benefits. Since 1975, practically all the gains in household income have gone to the top 20% of households. Since 1996, dividends and capital gains have grown faster than wages or any other category of after-tax income. Imported oil accounts for nearly 55% of US consumption. Oil prices doubled between 2001 and 2006, the year home prices peaked; higher gasoline prices ate into consumers' budgets and many individuals fell behind in their mortgage payments. Oil prices increased another 50% between 2006 and 2008. In 2008, soaring oil prices threatened inflation and caused a deterioration in the US merchandise trade deficit, which peaked at $840 billion. In 2009, with the global recession deepening, oil prices dropped 40% and the US trade deficit shrank, as US domestic demand declined, but in 2011 the trade deficit ramped back up to $803 billion, as oil prices climbed once more. The global economic downturn, the sub-prime mortgage crisis, investment bank failures, falling home prices, and tight credit pushed the United States into a recession by mid-2008. GDP contracted until the third quarter of 2009, making this the deepest and longest downturn since the Great Depression. To help stabilize financial markets, in October 2008 the US Congress established a $700 billion Troubled Asset Relief Program (TARP). The government used some of these funds to purchase equity in US banks and industrial corporations, much of which had been returned to the government by early 2011. In January 2009 the US Congress passed and President Barack OBAMA signed a bill providing an additional $787 billion fiscal stimulus to be used over 10 years - two-thirds on additional spending and one-third on tax cuts - to create jobs and to help the economy recover. In 2010 and 2011, the federal budget deficit reached nearly 9% of GDP; total government revenues from taxes and other sources are lower, as a percentage of GDP, than that of most other developed countries. The wars in Iraq and Afghanistan required major shifts in national resources from civilian to military purposes and contributed to the growth of the US budget deficit and public debt - through 2011, the direct costs of the wars totaled nearly $900 billion, according to US government figures. In March 2010, President OBAMA signed into law the Patient Protection and Affordable Care Act, a health insurance reform bill that will extend coverage to an additional 32 million American citizens by 2016, through private health insurance for the general population and Medicaid for the impoverished. Total spending on health care - public plus private - rose from 9.0% of GDP in 1980 to 17.9% in 2010. In July 2010, the president signed the DODD-FRANK Wall Street Reform and Consumer Protection Act, a law designed to promote financial stability by protecting consumers from financial abuses, ending taxpayer bailouts of financial firms, dealing with troubled banks that are "too big to fail," and improving accountability and transparency in the financial system - in particular, by requiring certain financial derivatives to be traded in markets that are subject to government regulation and oversight. Long-term problems include inadequate investment in deteriorating infrastructure, rapidly rising medical and pension costs of an aging population, sizable current account and budget deficits - including significant budget shortages for state governments - energy shortages, and stagnation of wages for lower-income families.

Source : CIA

Company name & address

Microchip Technology Inc.

2355 West Chandler Blvd.

Chandler, AZ 85224-6199

United States

Tel: 480-792-7200

Fax: 80-899-9210

Toll Free: 800-437-2767

Web: www.microchip.com

Synthesis

Employees: 6,923

Company Type: Public Parent

Corporate Family: 45 Companies

Traded: NASDAQ: MCHP

Incorporation Date: 1989

Auditor: Ernst & Young LLP

Financials in: USD (Millions)

Fiscal Year End: 31-Mar-2012

Reporting Currency: US Dollar

Annual Sales: 1,383.2 1

Net Income: 336.7

Total Assets: 3,083.8 2

Market Value: 6,440.3 (05-Oct-2012)

Business Description

Microchip Technology Incorporated develops and manufactures specialized semiconductor products used by its customers for a range of embedded control applications. Its product portfolio consists of 8-bit, 16-bit, and 32-bit PIC microcontrollers and 16-bit dsPIC digital signal controllers, which feature on-board Flash (reprogrammable) memory technology. In addition, it offers a range of linear, mixed-signal, power management, thermal management, radio frequency (RF), safety and security, and interface devices, as well as serial electrically erasable programmable read-only memories (EEPROMs), Serial Flash memories and Parallel Flash memories. It also licenses Flash-IP solutions, which are incorporated in a range of products. On February 9, 2012, the Company acquired Ident Technology AG. In April 2012, it acquired Roving Networks. In August 2012, it acquired Standard Microsystems Corp. For the three months ended 30 June 2012, Microchip Technology Inc. revenues decreased 6% to $352.1M. Net income decreased 21% to $78.7M. Revenues reflect Semicoductor products segment decrease of 6% to $331.9M, Technology licensing segment decrease of 2% to $20.3M, Europe segment decrease of 14% to $77.3M, Americas segment decrease of 9% to $72M. Net income also reflects Acquisition-related intangible asset amo increase from

Industry

Industry Semiconductors

ANZSIC 2006: 2429 - Other Electronic Equipment Manufacturing

NACE 2002: 3210 - Manufacture of electronic valves and tubes and other electronic components

NAICS 2002: 334413 - Semiconductor and Related Device Manufacturing

UK SIC 2003: 3210 - Manufacture of electronic valves and tubes and other electronic components

UK SIC 2007: 2611 - Manufacture of electronic components

US SIC 1987: 3674 - Semiconductors and Related Devices

Key Executives

(Emails Available)

Name	Title
Steve Sanghi	Chairman of the Board, President, Chief Executive Officer
James Eric Bjornholt	Chief Financial Officer, Vice President
Mitchell R. Little	Vice President - Worldwide Sales and Applications
Ganesh Moorthy	Chief Operating Officer
Richard J. Simoncic	Vice President - Analog and Interface Products Division

Significant Developments

Topic	#*	Most Recent Headline	Date
Mergers & Acquisitions	3	Microchip Technology Inc Announces Completion of Acquisition Standard Microsystems Corp	2-Aug-2012
General Products	2	Microchip Technology, Inc. Introduces Compact, Integrated RF Front-End Module for Wi-Fi Applications	14-Feb-2012
Other Earnings Pre-Announcement	4	Microchip Technology Inc Issues Q2 2012 Guidance	2-Aug-2012
Dividends	1	Microchip Technology Inc Declares Quarterly Cash Dividend	2-Aug-2012

* number of significant developments within the last 12 months,

News

Title	Date
Microchip warns of revenue shortfall Associated Press (157 Words)	15-Oct-2012
Microchip Technology Announces Preliminary Net Sales Results for Second Quarter Fiscal 2013 Business Wire (838 Words)	15-Oct-2012
Microchip Expands 70 MIPS dsPIC33E DSCs and PIC24E MCUs with 32 KB to 256 KB Flash for Easy Memory Migration Business Wire (810 Words)	15-Oct-2012
Microchip's New SMSC JukeBloxÂ® 3.1 SDK and CX875 Wi-FiÂ® Network Media Module Provide Easiest and Most Cost-Effective AirPlayÂ® Solution Business Wire (835 Words)	15-Oct-2012
United States : Microchip Launches Parallel SuperFlash Development Kit Mena Report (389 Words)	10-Oct-2012

Financial Summary

As of 30-Jun-2012

Key Ratios	Company	Industry
Current Ratio (MRQ)	8.92	3.90
Quick Ratio (MRQ)	8.03	3.02
Debt to Equity (MRQ)	0.18	0.21
Sales 5 Year Growth	5.88	11.04
Net Profit Margin (TTM) %	23.23	19.30
Return on Assets (TTM) %	10.24	15.21
Return on Equity (TTM) %	16.22	21.72

Stock Snapshot

Traded: NASDAQ: MCHP

As of 5-Oct-2012

Financials in: USD

Recent Price	33.25	EPS	1.69
52 Week High	38.88	Price/Sales	4.66
52 Week Low	30.23	Dividend Rate	1.40
Avg. Volume (mil)	1.92	Price/Earnings	20.10
Market Value (mil)	6,440.28	Price/Book	3.23
		Beta	1.11

	Price % Change	Rel S&P 500%
4 Week	-4.10%	-5.61%
13 Week	3.26%	-4.25%
52 Week	-0.12%	-20.35%
Year to Date	-9.23%	-21.86%

1 - Profit & Loss Item Exchange Rate: USD 1 = USD 1

2 - Balance Sheet Item Exchange Rate: USD 1 = USD 1

Corporate Overview

Location

2355 West Chandler Blvd.

Chandler, AZ, 85224-6199

Maricopa County

United States

Tel: 480-792-7200

Fax: 480-899-9210

Toll Free Tel: 800-437-2767

Web: www.microchip.com

Quote Symbol - Exchange

MCHP - NASDAQ

Sales USD(mil): 1,383.2

Assets USD(mil): 3,083.8

Employees: 6,923

Fiscal Year End: 31-Mar-2012

Industry: Semiconductors

Incorporation Date: 1989

Company Type: Public Parent

Quoted Status: Quoted

Chairman of the Board,

President, Chief Executive Officer: Steve Sanghi

Company Web Links

Company Contact/E-mail

Corporate History/Profile

Employment Opportunities

Executives

Financial Information

Home Page

Investor Relations

News Releases

Products/Services

Contents

Industry Codes

Business Description

Product Codes

Brand/Trade Names

Financial Data

Market Data

Key Corporate Relationships

Additional Information

Industry Codes

ANZSIC 2006 Codes:

2429 - Other Electronic Equipment Manufacturing

NACE 2002 Codes:

3210 - Manufacture of electronic valves and tubes and other electronic components

NAICS 2002 Codes:

334413 - Semiconductor and Related Device Manufacturing

US SIC 1987:

3674 - Semiconductors and Related Devices

UK SIC 2003:

3210 - Manufacture of electronic valves and tubes and other electronic components

UK SIC 2007:

2611 - Manufacture of electronic components

Business Description

Microchip Technology Incorporated, incorporated in 1989, develops and manufactures specialized semiconductor products used by its customers for a range of embedded control applications. Its product portfolio consists of 8-bit, 16-bit, and 32-bit PIC microcontrollers and 16-bit dsPIC digital signal controllers, which feature on-board Flash (reprogrammable) memory technology. In addition, it offers a range of linear, mixed-signal, power management, thermal management, radio frequency (RF), safety and security, and interface devices, as well as serial electrically erasable programmable read-only memories (EEPROMs), Serial Flash memories and Parallel Flash memories. It also licenses Flash-IP solutions, which are incorporated in a range of products. On February 9, 2012, the Company acquired Ident Technology AG. In April 2012, it acquired Roving Networks. In August 2012, it acquired Standard Microsystems Corp.

Microcontrollers

The Company offers a range of microcontroller products marketed under the PIC brand name. Its PIC products are designed for applications requiring field programmability. Its product architecture features dual data and instruction pathways, referred to as Harvard dual-bus architecture; a reduced instruction set computer, referred to as RISC, and variable length instructions. With close to 900 microcontrollers in its product portfolio, it targets the 8-bit, 16-bit, and 32-bit microcontroller markets. Digital Signal Controllers (DSC) are a subset of its 16-bit microcontroller offering. Its dsPIC DSC families integrate the control features of 16-bit microcontrollers with the computation capabilities of Digital Signal Processors (DSPs), along with a range of peripheral functions making them suitable for a range of embedded control applications. Its dsPIC product family offers a range of hardware and software development tools, software application libraries, development boards and reference designs to ease and expedite the customer application development cycle. It develops its user programmability feature by incorporating non-volatile memory, such as Flash, EEPROM and erasable programmable read-only memory (EPROM), into the microcontroller.

Development Tools

The Company offers a range of application development tools. These tools enable system designers to program a PIC microcontroller and dsPIC DSC for specific applications. Its family of development tools for PIC and dsPIC products range from entry-level systems, which include an assembler and programmer or in-circuit debugging hardware, to configured systems, which provides in-circuit emulation capability.

Analog and Interface Products

The Companyâ€™s analog and interface products consist of several families with approximately 800 power management, linear, mixed-signal, thermal management, RF Linear drivers, safety and security, and interface products. As of March 31, 2012, its mixed-signal analog and interface products were being shipped to more than 18,500 end customers. It markets and sells its analog and interface products into its microcontroller customer base, to customers who use microcontrollers from other suppliers. It markets these, and all of its products, based on an application segment approach targeted to provide customers with application solutions.

Memory Products

The Companyâ€™s memory products consist of serial electrically erasable programmable read-only memory (referred to as Serial EEPROMs), serial flash memories, parallel flash memories and serial static random access memory (SRAM) memories. It sells its memory products into the embedded control market, complementing its microcontroller offerings.

Technology Licensing

The Companyâ€™s technology licensing business includes license fees and royalties associated with technology licenses for the use of its SuperFlash technology and fees for engineering services. It licenses its SuperFlash technology to foundries, integrated device manufacturers and design partners globally for use in the manufacture of their advanced microcontroller products, gate array, RF and analog products, which require embedded flash

More Business Descriptions

Semiconductors Mfr

Establishments primarily engaged in manufacturing semiconductors and related solid- state devices. Important products of this industry are semiconductor diodes and stacks, including rectifiers, integrated microcircuits (semiconductor networks), transistors, solar cells, and light sensing and emitting semi-conductor (solid-state) devices.

Microchip Technology Incorporated (Microchip) engages in providing semiconductor products for diverse customer applications worldwide. It provides a broad spectrum of high-performance linear, mixed-signal, power management, thermal management, battery management and interface devices and also serial EEPROMs. The company operates through one business segment and engages principally in design, development, manufacture and marketing of semiconductor products. The company provides four embedded control solutions namely microcontrollers, development tools, analog and interface products, technology licensing and memory products. Microcontroller products features unique and proprietary architecture of the company and are marketed under the PIC brand name. The products are used in applications that require field-programmability, high performance, low power and cost effectiveness. It comprises more than 550 microcontrollers targeting the 8-bit, 16-bit, and 32-bit microcontroller markets. The dsPIC digital signal controller (DSC) product family is used in a large number of embedded control applications. dsPIC offers a wide range of hardware and software development tools, software application libraries, development boards and reference designs that enhances the customer application development cycle. It embeds non volatile memory such as Flash, Electrically Erasable Programmable Read Only Memory (EEPROM) and EPROM Memory into the microcontroller to develop advanced and low cost user programmability feature. The development tools simplify the process of programming a PIC microcontroller and dsPIC digital signal controllers for specific applications. These tools ranging from entry-level systems, including an assembler and programmer or in-circuit debugging hardware, to fully configured systems that provide in-circuit emulation hardware operates in the standard Windows environment. The analog and interface products include more than 730 power management, linear, mixed-signal, thermal management and interface product families. The company markets the mixed signal analog and interface products based on an application segment approach. By the end of fiscal 2011, the company's mixed-signal analog and interface products were being shipped to more than 17,500 end customers.The memory products offered by the company include EEPROMs. Serial EEPROM, Serial Flash Memories, Parallel Flash Memories and Serial SRAM memories, which are used for non-volatile program and data storage in systems. The company sells these devices to the embedded control market across the world. The technology licensing business segment of the company includes license fees and royalties associated with SST's technology licenses for the use of SuperFlash technology and fees for engineering services. This technology is used in the manufacture of the company's advanced microcontroller products. The company licenses its SuperFlash technology parties including, foundries, IDMs and design partners throughout the world.The companyâ€™s manufacturing operations include wafer fabrication and assembly and test. It operates manufacturing facilities in Tempe, Arizona; Chandler, Arizona; and Gresham, Oregon. It has assembly and testing facilities near Bangkok, Thailand for carrying out assembly, probe and testing for all of its wafer production. the company's research and development division has major focus on the development of microcontrollers, digital signal controllers, analog and interface products NOR FLASH Memory, Embedded FLASH technologies, RF products, development systems, Serial EEPROM memory, software and application-specific software libraries. The company also engages in the development and design of technologies, which would enable products and innovative features. This developmental activity of the company helps it to achieve further cost reductions and performance improvements in existing products. For the fiscal year ended March 2011, the company spent around $170.6m on the R&D activities as compared to $120.8m spent in the previous fiscal.The company maintains a portfolio of the US and foreign patents, expiring on various dates between 2010 and 2028. It has also entered into certain intellectual property licenses and cross-licenses with other companies related to semiconductor products and manufacturing processes. The company markets its products through its own direct sales personnel and distributors. The company has sales and technical support centers and strategic accounts in Americas, Europe and Asia. The company's distributors are focused on offering product to a broad and diverse base of customers. For the fiscal year ended March 2011, the company derived 58% of its net sales through distributors and 42% of its net sales from customers serviced directly by Microchip. Microchip's geographic segment comprises of three regions, namely, the Americas, Europe and Asia. For the fiscal year ended March 2011, the Americas region accounted for 20.9% of its total sales followed by Europe (22.5%) and Asia (56.6%). In August 2011, the company announced the expansion of its MCP6V2X family of operational amplifiers. The expansion would be in the form of a modified New Low-Noise device, which would feature a self-correcting auto-zero architecture enabling ultra-high precision, including an input offset voltage of just 2 microvolts and a gain bandwidth product of 2 MHz.In April 2011, the company's RE46C190 3V programmable photoelectric Smoke-Detector IC received a UL component certification for use in single- and multiple-station smoke alarms, per specification UL 217, which simplifies the certification of smoke-detector products by the UL. This device is the worldâ€™s first smoke-detector IC to offer low-voltage operation with programmable calibration and operating modes, which enables the desired modes to be selected and calibrated during manufacturing.

Microchip Technology Incorporated (Microchip) is a semiconductor company which develops and manufactures microcontroller and analog semiconductors. The company's product offering find application in a range of embedded control processes. It develops products featuring on-board flash memory technology, and a broad spectrum of high-performance linear, mixed-signal, power management, thermal management, battery management and interface devices. Microchip principally caters to the varying needs of the automotive, communications, computing, consumer, and industrial control markets. The company maintains a wide network of sales and support spread across the regions of North America, Europe, Middle East, South America, Africa and Asia-Pacific. The company is headquartered in Arizona, the US.The company reported revenues of (U.S. Dollars) USD 1,383.18 million during the fiscal year ended March 2012, a decrease of 6.99% from 2011. The operating profit of the company was USD 396.52 million during the fiscal year 2012, a decrease of 16.38% from 2011. The net profit of the company was USD 336.71 million during the fiscal year 2012, a decrease of 19.63% from 2011.

Microchip Technology is a leading provider of microchip and analog semiconductors. It offers low-risk product development, low total system cost and faster time to market for thousands of customer applications. Microchip Technology is an employer of more than 3,500 people throughout the world. The company is headquartered in Chandler, Ariz., and also maintains fabrication facilities in Tempe, Ariz., and Greshham, Ore., as well as an assembly/test facility in Thailand. It has more than 40 sales offices throughout the world. In 2005, the company soared to new highs with net sales of nearly $847 million, up from $699.2 million the previous fiscal year.

Manufacturer of the PICmicro(R) family of 8-bit RISC-based microcontrollers with OTP, Enhanced FLASH, EEPROM and ROM memory technologies; dsPIC(R) 16-bit digital signal controllers; serial EEPROMs and related specialty memory products; MicroID passive RFID tag chips; and KEELOQ(R) code hopping devices, voltage converters, regulators, analog-to-digital devices, voltage detection equipment, fan controllers, temperature measuring devices, switching ICs and mixed ICs. Also developer of MPLAB(R) design/development software, which runs on Windows. Parent/holding company with high-tech units involved in electronic subassemblies. Products are sold to multiple industries.

Product Codes

Product Code	Product Description
COM-CN-A	Analog-to-digital devices
SOF-TS-EE	Electronics design/development software - MPLAB(R)
SUB-EM-M	Voltage regulators
SUB-ES-CB	DC-to-DC voltage converters
SUB-ES-CV	Voltage to frequency converters
SUB-ES-CZ	Frequency-to-voltage converters
SUB-ME-P	Linear regulators
SUB-SE-I3	Microcontrollers - PIC(R)
SUB-SE-I3	Digital signal controllers - dsPIC(R)
SUB-SE-IE	Decoder/encoder ICs -KEELOQ(R)
SUB-SE-IK	RFID tag chips
SUB-SE-IN	Code hopping devices
SUB-SE-IN	EEPROM ICs
SUB-SE-IS	Mixed ICs
TAM-DE	Voltage detection equipment
TAM-ME-MT	Temperature measuring devices
TAM-PV-E	Fan controllers
ZZZ-HC	Holding Company

Brand/Trade Names

Rfpic - Integrated circuits

Financial Data

Financials in:	USD(mil)

Revenue:	1,383.2
Net Income:	336.7
Assets:	3,083.8
Long Term Debt:	355.0
Total Liabilities:	1,093.1
Working Capital:	0.8

Date of Financial Data:	31-Mar-2012

1 Year Growth

-7.0%

-21.5%

3.9%

Market Data

Quote Symbol:	MCHP
Exchange:	NASDAQ
Currency:	USD
Stock Price:	33.3
Stock Price Date:	10-05-2012
52 Week Price Change %:	-0.1
Market Value (mil):	6,440,275.0

SEDOL:	2592174
ISIN:	US5950171042

Equity and Dept Distribution:
Common Stock $.001 Par, 06/11, 450M auth., 218,789,994 issd, less 29,248,287 shs. in Treas. @ $888.1M. Insiders own 2.50%. PO 11/94, 1M shs. @$30.25 by Alex. Brown & Sons. PO 1/97, 1.2M shs. @ $36.25 by Alex. Brown & Sons. *9/99 Q is restated. FY'01 Q's are restated. FY'03 Q's are restated.

Key Corporate Relationships

Auditor:	Ernst & Young LLP

Auditor:	Ernst & Young LLP

Additional Information
ABI Number:	403914583

Strategic Initiatives

Key Organizational Changes

The primary reasons for the dollar increase in R&D costs in fiscal 2012 compared to fiscal 2011 were an increased number of employees driving higher employee costs and higher discretionary expenses offset by lower bonus costs. R&D expenses increased $49.8 million, or 41.2%, for fiscal 2011 over fiscal 2010. The primary reasons for the dollar increase in R&D costs in fiscal 2011 compared to fiscal 2010 were higher salary and bonus costs and additional costs from our acquisition of SST.GlobalData uses a range of research techniques to gather and verify its information and analysis. These include primary research, in-house knowledge and expertise, proprietary databases, and secondary sources such as company websites, annual reports, SEC filings and press releases. Disclaimer: No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the publisher

These acquisitions are intended to supplement Microchipâ€™s core growth and strengthen its business operations. In April 2012, the company completed the acquisition of Roving Networks, a California based provider of unique solutions for both Wi-Fi and Bluetooth data connections. This acquisition was made in line with the companyâ€™s strategy of expanding its product line. The acquisition of Roving Networks helps Microchip in leveraging the innovative Wi-Fi and Bluetooth connectivity solutions to meet the needs of a growing number of embedded applications that take advantage of the rapidly expanding wireless infrastructure. This also helps the company broaden its range of wireless connectivity options that it provides to customers to enable their end-product innovation.

In April 2012, the company completed the acquisition of Roving Networks, a California based provider of unique solutions for both Wi-Fi and Bluetooth data connections. This acquisition was made in line with the companyâ€™s strategy of expanding its product line. The acquisition of Roving Networks helps Microchip in leveraging the innovative Wi-Fi and Bluetooth connectivity solutions to meet the needs of a growing number of embedded applications that take advantage of the rapidly expanding wireless infrastructure. This also helps the company broaden its range of wireless connectivity options that it provides to customers to enable their end-product innovation. Successful integration of this acquisition could reap significant benefits for Microchip.Positive Outlook for SemiconductorThe positive outlook for the semiconductor market could benefit the operations of Microchip.

Resource Management

In the fiscal year ended March 2012, its revenue declined by 7% over that in 2011 to reach $1,383.18m. The companyâ€™s inconsistent performance could adversely affect its operations. Such fluctuations in its revenue could lower investorsâ€™ confidence in Microchip and hamper its operations, if the company fails to steady its performance.Acquisition of Roving NetworksThe company continues to view acquisition as a key part of its growth strategy. These acquisitions are intended to supplement Microchipâ€™s core growth and strengthen its business operations. In April 2012, the company completed the acquisition of Roving Networks, a California based provider of unique solutions for both Wi-Fi and Bluetooth data connections.

Such fluctuations in its revenue could lower investorsâ€™ confidence in Microchip and hamper its operations, if the company fails to steady its performance.acquisition of Roving NetworksThe company continues to view acquisition as a key part of its growth strategy. These acquisitions are intended to supplement Microchipâ€™s core growth and strengthen its business operations. In April 2012, the company completed the acquisition of Roving Networks, a California based provider of unique solutions for both Wi-Fi and Bluetooth data connections. This acquisition was made in line with the companyâ€™s strategy of expanding its product line. The acquisition of Roving Networks helps Microchip in leveraging the innovative Wi-Fi and Bluetooth connectivity solutions to meet the needs of a growing number of embedded applications that take advantage of the rapidly expanding wireless infrastructure.

Sales and Distribution

Excluding our SST memory product sales, our memory product sales increased approximately 20.0% in fiscal 2011 compared to fiscal 2010. The decrease in memory product net sales in fiscal 2012 compared to fiscal 2011 was driven primarily by adverse customer demand conditions within the Serial EEPROM and Flash memory markets and weak general economic and semiconductor industry conditions. The increase in memory product net sales in fiscal 2011 compared to fiscal 2010 was driven primarily by increased revenue due to our acquisition of SST, improving semiconductor industry conditions and by customer demand conditions within the Serial EEPROM and Flash memory markets. Memory product pricing has historically been cyclical in nature, with steep price declines followed by periods of relative price stability, driven by changes in industry capacity at different stages of the business cycle. We have experienced, and expect to continue to experience, varying degrees of competitive pricing pressures in our memory products.

Net sales of our analog and interface products decreased approximately 3.8% in fiscal 2012 compared to fiscal 2011 and increased approximately 78.3% in fiscal 2011 compared to fiscal 2010. The decrease in net sales in fiscal 2012 compared to fiscal 2011 was driven primarily by weak general economic and semiconductor industry conditions which offset market share gains achieved within the analog and interface market. The increase in net sales in fiscal 2011 compared to fiscal 2010 was driven primarily by improving semiconductor industry conditions, market share gains achieved within the analog and interface market and increased revenue due to our acquisition of SST. Analog and interface products can be proprietary or non-proprietary in nature. Currently, we consider more than 70% of our analog and interface product mix to be proprietary in nature, where prices are relatively stable, similar to the pricing stability experienced in our microcontroller products.

Technology licensing revenue includes a combination of royalties associated with technology licensed for the use of our SuperFlash technology and fees for engineering services. Technology licensing accounted for approximately 6.3% of our total net sales in fiscal 2012 and approximately 4.8% of our total net sales in fiscal 2011. Technology licensing revenue is the result of our acquisition of SST in the first quarter of fiscal 2011. Net sales related to our technology licensing increased approximately 20.7% in fiscal 2012 compared to fiscal 2011 driven primarily by the adoption of our technology by more manufacturers of semiconductors. Revenue from technology licensing can fluctuate over time due to general economic and semiconductor industry conditions.

Our net sales of $1,383.2 million in fiscal 2012 decreased by $104.0 million, or 7.0%, over fiscal 2011, and our net sales of $1,487.2 million in fiscal 2011 increased by $539.5 million, or 56.9%, over fiscal 2010. The decrease in net sales in fiscal 2012 over fiscal 2011 was due primarily to weak general economic and semiconductor industry conditions. The increase in net sales in fiscal 2011 over fiscal 2010 was due primarily to improving semiconductor industry conditions, market share gains in our microcontroller and analog product lines, and an increase in net sales due to our acquisition of SST. Average selling prices for our semiconductor products were essentially flat in fiscal 2012 over fiscal 2011 and were down approximately 1% in fiscal 2011 over fiscal 2010. The number of units of our semiconductor products sold was down approximately 8% in fiscal 2012 over fiscal 2011 and up approximately 54% in fiscal 2011 over fiscal 2010.

The number of units of our semiconductor products sold was down approximately 8% in fiscal 2012 over fiscal 2011 and up approximately 54% in fiscal 2011 over fiscal 2010. The average selling prices and the unit volumes of our sales are impacted by the mix of our products sold and overall semiconductor market conditions. Key factors impacting the amount of net sales during the last three fiscal years include: - global economic conditions in the markets we serve; - semiconductor industry conditions; - our acquisition of SST; - inventory holding patterns of our customers; - increasing semiconductor content in our customers' products; - customers' increasing needs for the flexibility offered by our programmable solutions; - our new product offerings that have increased our served available market; and - continued market share gains in the segments of the markets we address. Our microcontroller product line represents the largest component of our total net sales.

Our microcontroller product line represents the largest component of our total net sales. Microcontrollers and associated application development systems accounted for approximately 67.1% of our total net sales in fiscal 2012, approximately 68.2% of our total net sales in fiscal 2011 and 81.0% of our total net sales in fiscal 2010. The primary reason for the decrease in our microcontroller net sales as a percentage of our total net sales in fiscal 2011 compared to fiscal 2010 was our acquisition of SST which resulted in an increase in our memory product and technology licensing sales. Net sales of our microcontroller products decreased approximately 8.4% in fiscal 2012 compared to fiscal 2011, and increased approximately 32.1% in fiscal 2011 compared to fiscal 2010. The decrease in net sales in fiscal 2012 compared to fiscal 2011 and the increase in net sales in fiscal 2011 compared to fiscal 2010 resulted primarily from changes in general economic and semiconductor industry conditions in the end markets that we serve including the consumer, automotive, industrial control, communications and computing markets, as well as market share gains.

We may be unable to maintain average selling prices for our microcontroller products as a result of increased pricing pressure in the future, which could adversely affect our operating results. Sales of our memory products accounted for approximately 13.0% of our total net sales in fiscal 2012, approximately 14.9% of our total net sales in fiscal 2011 and approximately 8.5% of our total net sales in fiscal 2010. The primary reason for the increase in our memory product net sales as a percentage of our total net sales in fiscal 2011 compared to the prior fiscal year was our acquisition of SSTâ€™s SuperFlash memory products. Net sales of our memory products decreased approximately 19.0% in fiscal 2012 compared to fiscal 2011, and increased approximately 176% in fiscal 2011 compared to fiscal 2010. Excluding our SST memory product sales, our memory product sales increased approximately 20.0% in fiscal 2011 compared to fiscal 2010.

Strengths/Weaknesses (SWOT)

Helpful
to achieving the objective

Harmful
to achieving the objective

Internal Origin
(attributes of the organization)

Strengths

· Strong Products and Services Portfolio

· Network of Manufacturing Facilities

· Robust Research & Development

Weaknesses

· Dependence on Distributors

· Fluctuating Revenues

External Origin
(attributes of the environment)

Opportunities

· Acquisition of Roving Networks

· Positive Outlook for Semiconductor

· Increasing Demand for Memory Products

Threats

· Rapid Technological Changes

· Growing Competition

· Cyclic Nature of Semiconductor Industry

Overview

Microchip Technology Incorporated (Microchip) develops and manufactures microcontroller and analog semiconductors. Its product offerings such as microcontrollers, development tools, analog and interface products, and memory products are used in a range of embedded control applications. The companyâ€™s business model is strengthened by its strong products and services portfolio, and manufacturing facilities to drive market acceptance and application of its products. However, changing technologies and growing competition would pose several new challenges to Microchip in sustaining profitable growth.

Strengths

Strong Products and Services Portfolio

Strong products and services portfolio of Microchip ensures the companyâ€™s ability to withstand any market specific downturn. It develops and produces specialized semiconductor products for a variety of embedded control applications. It principally provides microcontrollers, development tools, analog and interface products, and memory products comprising 8-bit, 16-bit, and 32-bit PIC microcontrollers and 16-bit dsPIC digital signal controllers. The company also offers a wide spectrum of high-performance linear, mixed-signal, power management, thermal management, safety and security, and interface devices. Microchipâ€™s embedded control systems are provided in a wide variety of applications and markets worldwide including automotive comfort, safety and entertainment applications; remote control devices; handheld tools; home appliances; portable computers; robotics; accessories; cordless and cellular telephones; motor controls; security systems; educational and entertainment devices; consumer electronics; power supplies; touch screens; and medical products. Such wide product and service portfolio enables the company to cater to the requirements of a wide group of industries.

Network of Manufacturing Facilities

The highly specialized domestic manufacturing capabilities of Microchip contribute towards improving its operational revenue. The company manufactures certain of its products in its manufacturing facilities, by sourcing components from foreign and domestic suppliers, and performing final assembly and test functions. It has strong manufacturing capabilities for its wafer fabrications. The major manufacturing facilities of Microchip are located in Tempe, Arizona (Fab 2); Chandler, Arizona (for probe operations); Gresham, Oregon (Fab 4); and Bangkok, Thailand (for assembly, probe and test). Strong manufacturing capabilities ensure efficient manufacturing and sourcing processes for the company, which has helped it in reducing the time required for it to ship products in several of the commercial markets where a short delivery cycle for custom-manufactured products is crucial. The company has also achieved major reductions in rework on semiconductors and related products. Strong and efficient manufacturing capabilities of Microchip have enhanced its ability to compete for new business as well as improved its profitability.

Robust Research & Development

Microchip has robust research and development (R&D) capabilities. Its R&D activities are focused on improving the performance of its existing products and developing new technologies. The company focuses on developing new microcontrollers, digital signal controllers, Serial EEPROM memory, analog and interface products, software and application-specific software libraries, as well as on enhancing and maintaining its technological advantages. Its R&D capabilities enable the company to overcome technical barriers encountered in the commercialization of sophisticated semiconductors and related products. The R&D team of the company undertakes several projects to enhance and develop various products and technologies. For the fiscal year ended March 2012, the company had investments of $182.65m on its R&D activities as compared to $170.6m spent in the previous fiscal. The companyâ€™s employeesâ€™ hold engineering degrees and its engineers actively participate in professional and industry technical conferences and working groups. Such strong R&D capabilities enable Microchip to implement innovative technology and deliver advance products, and services that meet its customers' critical needs.

Weaknesses

Dependence on Distributors

Dependence on distributors affects the stability of Microchip by reducing the future net sales upon any disruption or loss in the operations. Microchipâ€™s depends on third parties such as distributors for its major portion of sales. The company does not hold any long-term agreements with its distributors and major part of its sales are derived by distributors, which could increase the risk of the company. For the fiscal years ended March 2012 and 2011, the contribution made by the distributors accounted for 59% and 58% respectively of the companyâ€™s net sales. The companyâ€™s largest distributor accounted for approximately 10% of its net sales in fiscal 2012 and 2011. Thus, in any adverse situation, failure to retain good and healthy relationships with the third parties like distributors would adversely affect the performance of the company.

Fluctuating Revenues

The companyâ€™s sales performance remained inconsistent in the past five years (2008-2012). Mircochipâ€™s revenue has been fluctuating considerably over the same period. The company recorded revenue of $1,035.74m during fiscal year 2008, which decreased 12.8% to $903.3m in fiscal year 2009. Its revenue then increased 4.9% over 2009 to $947.73m in 2010, and then increased 56.9% in 2011 to reach $1,487.2m. In the fiscal year ended March 2012, its revenue declined by 7% over that in 2011 to reach $1,383.18m. The companyâ€™s inconsistent performance could adversely affect its operations. Such fluctuations in its revenue could lower investorsâ€™ confidence in Microchip and hamper its operations, if the company fails to steady its performance.

Opportunities

Acquisition of Roving Networks

The company continues to view acquisition as a key part of its growth strategy. These acquisitions are intended to supplement Microchipâ€™s core growth and strengthen its business operations. In April 2012, the company completed the acquisition of Roving Networks, a California based provider of unique solutions for both Wi-Fi and Bluetooth data connections. This acquisition was made in line with the companyâ€™s strategy of expanding its product line. The acquisition of Roving Networks helps Microchip in leveraging the innovative Wi-Fi and Bluetooth connectivity solutions to meet the needs of a growing number of embedded applications that take advantage of the rapidly expanding wireless infrastructure. This also helps the company broaden its range of wireless connectivity options that it provides to customers to enable their end-product innovation. Successful integration of this acquisition could reap significant benefits for Microchip.

Positive Outlook for Semiconductor

The positive outlook for the semiconductor market could benefit the operations of Microchip. According to a Future Horizons report, the market for semiconductors is projected to reach $385.2 billion by 2014, recording a compound annual growth rate (CAGR) of 13.4%. Sales of PCs is expected to be higher in the developing countries rather than as replacement sales in the saturated markets of North America and Western Europe. In the coming years, the demand for semiconductors from the automotive industry is expected to be high, as an average vehicle will have more semiconductors with the addition of devices such as automatic braking system and accident avoidance systems, including more entertainment systems. Next generation vehicles, anticipated to be introduced in 2011, will have 3D displays, virtual reality and sensory feedback, among others, pushing up the demand for semiconductors. Market acceptance of HD video for better viewing experience and convergence will continue to propel the market for semiconductors. With mobile phone market still expanding in developing countries, coupled with the possible emergence of new mobile phone architecture that handles different radio protocols, the demand for semiconductors will continue to be high in the coming years. Besides, commoditization is expected to pave way for application standard products over custom chips, which may lead to lower end user prices. Even heart monitoring systems, insulin analysis and pollen count indicators may drive the demand.

Increasing Demand for Memory Products

Increasing demand for memory products could offer ample growth opportunities for Microchip in the future years. Microchip offers memory products such as such as Flash, EEPROM and EPROM Memory. Serial EEPROM are used for non-volatile program and data storage in systems. The company sells these devices to the embedded control market across the world, which offer greatly improved performance as well as increased flexibility, lower power consumption, and reduced space needs. The industrial customers are demanding flash drives instead of rotating disk drives for enhancing performance and consistency. The 2011 Flash Memory Summit held in California reveals that the flash memory and its applications are expected to surpass $29 billion in 2014. The demand for flash memories is expected to grow 130% annually, driven by demand from end-user segments including mobile handsets, MP3/PMP players, digital cameras, and USB flash drives. Additionally, by 2015, more than 1.1 billion flash-enabled smartphones representing a 240% growth rate growth are expected to be in use worldwide. This outlook augurs well for the company.

Threats

Rapid Technological Changes

Rapid technological change in the market increases the risk of the products of Microchip getting obsolete. The company's offerings are characterized by rapid technological changes, which may affect its business operations. The company has developed SuperFlash technology for the manufacture of advanced microcontrollers. Through this technology the company continues to enhance and refine its extensive product portfolio. For the fiscal year ended 2011, the company developed special segment of operation named, Technology Licensing, which includes license fees and royalties associated with SST's technology licenses for the use of this technology. Even though the company has advanced technologies in its portfolio, to compete effectively with its peers, it should continually introduce new products that exceed the customersâ€™ requirements. The introduction of products using new technologies or the adoption of new industry standards can make existing products, or products under development, obsolete or unmarketable. Inability to study the evolving technological landscape may impact the companyâ€™s competitive position.

Growing Competition

Microchip operates in highly competitive markets, which increases the pressure and limits its ability to maintain or increase its rates. The semiconductor industry is highly competitive. The company encounters strong competition from other independent companies and major service providers in all aspects of its business. The company's energy operations are limited to particular few regions, where its competitors hold diversified business operations. This increasing competitive pressure limits its market share and revenue base. Many of these competitors have financial and technical resources and staffs substantially larger than the company. Additionally, any major activities of its competitors or their entry or expansions into new markets could increase the pressure on Microchip, which could further impact its competitive ability. As a result competitors may be able to pay more for desirable leases, or to evaluate, bid or invest in technology as compared to the company. Inability to compete successfully may hamper the financial performance of the company.

Cyclic Nature of Semiconductor Industry

The cyclic nature of the semiconductor industry affects the operations of the company. The semiconductor industry is characterized by wide fluctuations in product supply and demand. The industry also experiences significant downturn in connection with, or in anticipation of, maturing product cycles and declines in general economic conditions. With such uncertainty, the sales for the fiscal 2013 could increase or decrease accordingly. Specifically, the operating results of the company have been adversely affected in the past by these industry-wide fluctuations in the demand for semiconductors, which resulted in under-utilization of their manufacturing capacity and declining gross margins. Thus Microchip has to device strategies to overcome the ill effects of the short term period-to-period fluctuations in operating results due to general industry.

Credit Report as of 11/01/2011

Location

2355 W Chandler Blvd
Chandler, AZ 85224-6199
United States

County: Maricopa

MSA: Phoenix-Mesa, AZ

Phone: 480-792-7200

Fax: 480-899-9210

URL: http://microchip.com

ABI^©: 403914583

Annual Sales: $1,383,176,000 (USD)

Employees: 6,923

Facility Size(ft²): 40,000+

Facility Own/Lease: Own

Business Type: Public

Location Type: Headquarter

Ticker: MCHP

Exchange: NASDAQ

Primary Line of Business:
SIC:	3674-01 - Semiconductor Devices (Mfrs)
NAICS:	334413 - Semiconductors & Related Devices Mfg
Secondary Lines of Business:
SICs:	4813-02 - Telecommunications Services
	5099-05 - Importers (Whls)
NAICS:	423990 - All Other Durable Goods Merchant Whols
	517310 - Telecommunications Resellers

Corporate Family	Corporate Structure News:
	Microchip Technology Inc.
Microchip Technology Inc. Total Corporate Family Members: 45

Company Name	Company Type	Location	Country	Industry	Sales (USD mil)	Employees
Microchip Technology Inc.	Parent	Chandler, AZ	United States	Semiconductors	1,383.2	6,923
Microchip Technology (Thailand) Co Ltd	Subsidiary	Chachoengaso	Thailand	Semiconductors		2,500
Arizona Microchip Technology (Thailand) Ltd.	Subsidiary	Bangkok	Thailand	Semiconductors		2,000
Standard Microsystems Corporation	Subsidiary	Hauppauge, NY	United States	Semiconductors	407.0	1,064
Recently acquired (previously owned by Standard Microsystems Corporation).See corporate structure news on Microchip Technology Inc. for details
SMSC	Branch	Austin, TX	United States	Semiconductors	94.2	165
SMSC	Branch	Laguna Niguel, CA	United States	Semiconductors	51.4	90
SMSC	Branch	West Lake Hills, TX	United States	Semiconductors	42.8	75
SMSC	Branch	Austin, TX	United States	Semiconductors	34.3	60
SMC Japan	Subsidiary	Tokyo	Japan	Semiconductors		50
Standard Microsystems Corp	Branch	Phoenix, AZ	United States	Semiconductors	28.0	49
SMSC	Branch	Tucson, AZ	United States	Biotechnology and Drugs		32
Bridge Co Inc	Subsidiary	El Segundo, CA	United States	Communications Services	2.5	12
SMSC	Branch	Mesa, AZ	United States	Electronic Instruments and Controls	2.2	11
SMSC	Branch	Lake Oswego, OR	United States	Semiconductors	5.7	10
SMSC	Branch	Durham, NC	United States	Semiconductors	5.7	10
SMSC Europe - Munich	Subsidiary	Holzkirchen	Germany	Electronic Instruments and Controls		5
Standard Microsystems Corp	Branch	San Jose, CA	United States	Semiconductors	2.3	4
SMSC	Branch	San Diego, CA	United States	Real Estate Operations	0.4	2
SMSC Asia	Subsidiary	Beijing	China	Electronic Instruments and Controls		2
SMSC Japan	Subsidiary	Tokyo	Japan	Electronic Instruments and Controls	1.0
Silicon Storage Technology, Inc.	Subsidiary	San Jose, CA	United States	Semiconductors	1.4	571
Silicon Storage Technology Inc	Subsidiary	Sunnyvale, CA	United States	Real Estate Operations	0.4	517
Microchip Ltd.	Subsidiary	Wokingham	United Kingdom	Appliance and Tool	72.1	63
Microchip Technology Inc	Branch	Los Angeles, CA	United States	Semiconductors	18.8	33
Microchip Technology (Barbados - Taiwan Branch)	Subsidiary	Taipei	Taiwan	Semiconductors		30
Microchip Technology Inc	Branch	Mission Viejo, CA	United States	Semiconductors	8.6	15
Microchip Technology Inc	Branch	Westborough, MA	United States	Semiconductors	8.6	15
Roving Networks, Inc.	Subsidiary	Los Gatos, CA	United States	Communications Equipment		15
Microchip Technology Ireland Limited	Subsidiary	Dublin	Ireland	Electronic Instruments and Controls	685.8	14
R and E International, Inc.	Subsidiary	King Of Prussia, PA	United States	Semiconductors		14
Microchip Technology Inc	Subsidiary	Milwaukee, WI	United States	Electronic Instruments and Controls	9.9	13
Microchip Technology Inc	Branch	Itasca, IL	United States	Semiconductors	6.9	12
Microchip Technology Inc	Branch	Duluth, GA	United States	Semiconductors	5.7	10
Microchip Technology Inc	Branch	Tempe, AZ	United States	Semiconductors	5.7	10
Microchip Technology Inc	Branch	Independence, OH	United States	Semiconductors	5.7	10
Microchip Technology Inc	Branch	Gresham, OR	United States	Semiconductors	5.7	10
Microchip Technology Inc	Branch	Farmington Hills, MI	United States	Semiconductors	5.7	10
Microchip Technology Inc	Branch	Norristown, PA	United States	Biotechnology and Drugs		10
Microchip Technology Inc	Branch	Austin, TX	United States	Semiconductors	4.0	7
Microchip Technology Inc	Branch	Noblesville, IN	United States	Retail (Technology)	1.9	6
Microchip Technology Inc	Branch	Melville, NY	United States	Semiconductors	2.9	5
Roving Networks	Subsidiary	Los Gatos, CA	United States	Biotechnology and Drugs		3
Microchip Technology, Inc./ Security, Microcontroller and Technology Division	Division	Chandler, AZ	United States	Semiconductors
Microchip Technology, Inc./ Analog and Interface Products Division	Division	Chandler, AZ	United States	Semiconductors
Microchip Technology, Inc./ Advanced Microcontroller and Memory Division	Division	Chandler, AZ	United States	Semiconductors

Competitors Report

Company Name	Location	Employees	Ownership
Advanced Micro Devices, Inc.	Sunnyvale, California, United States	11,737	Public
Agere Systems Inc.	Allentown, Pennsylvania, United States	5,100	Private
Altera Corporation	San Jose, California, United States	2,884	Public
Amkor Technology, Inc.	Chandler, Arizona, United States	18,300	Public
Analog Devices, Inc.	Norwood, Massachusetts, United States	9,200	Public
Atmel Corporation	San Jose, California, United States	5,200	Public
Broadcom Corporation	Irvine, California, United States	8,330	Public
Conexant Systems, Inc.	Newport Beach, California, United States	150	Private
Cypress Semiconductor Corporation	San Jose, California, United States	3,400	Public
Dialog Semiconductor plc	London, Germany	710	Public
Echelon Corporation	San Jose, California, United States	302	Public
Fairchild Semiconductor International	San Jose, California, United States	8,817	Public
Freescale Semiconductor Ltd	Austin, Texas, United States	18,000	Public
FUJITSU LIMITED	Tokyo, Japan	173,155	Public
Infineon Technologies AG	Neubiberg, Germany	26,454	Public
Intel Corporation	Santa Clara, California, United States	100,800	Public
International Rectifier Corporation	El Segundo, California, United States	4,911	Public
Intersil Corp	Milpitas, California, United States	1,643	Public
JDS Uniphase Corp	Milpitas, California, United States	4,950	Public
Linear Technology Corporation	Milpitas, California, United States	4,365	Public
LSI Corporation	Milpitas, California, United States	4,588	Public
Macronix International Co., Ltd.	Hsinchu, Taiwan	5,470	Public
Maxim Integrated Products Inc.	San Jose, California, United States	9,065	Public
MEMC Electronic Materials, Inc.	St. Peters, Missouri, United States	6,350	Public
Micron Technology, Inc.	Boise, Idaho, United States	26,100	Public
Mitsubishi Electric Corporation	Tokyo, Japan	117,314	Public
National Semiconductor Corporation	Santa Clara, California, United States	5,700	Private
Novellus Systems, Inc.	San Jose, California, United States	2,855	Public
NVIDIA Corporation	Santa Clara, California, United States	7,133	Public
NXP Semiconductors	San Jose, California, United States	700	Private
NXP Semiconductors NV	Eindhoven, Netherlands	25,388	Public
ON Semiconductor Corp.	Phoenix, Arizona, United States	19,442	Public
Oracle America, Inc.	Santa Clara, California, United States	29,000	Private
RadiSys Corporation	Hillsboro, Oregon, United States	1,024	Public
Renesas Electronics Corporation	Tokyo, Japan	42,800	Public
Renesas Electronics Corporation	Kawasaki, Kanagawa, Japan	46,630	Public
Silicon Laboratories	Austin, Texas, United States	908	Public
Skyworks Solutions Inc	Woburn, Massachusetts, United States	4,400	Public
STMicroelectronics N.V.	Geneve, Switzerland	50,000	Public
Texas Instruments Incorporated	Dallas, Texas, United States	34,759	Public
VIA Technologies, Inc.	New Taipei, Taiwan	2,392	Public
Winbond Electronics Corp.	Taichung, Taiwan	3,560	Public
Xilinx, Inc.	San Jose, California, United States	3,265	Public
Zilog Inc.	San Jose, California, United States	174	Private

Executive report

Board of Directors

Name

Title

Function

Steve Sanghi

Chairman of the Board, President, Chief Executive Officer

Chairman

Biography:

Mr. Steve Sanghi is Chairman of the Board, President and Chief Executive Officer of Microchip Technology Inc. Mr. Sanghi currently, and has been since August 1990, a director and President of Microchip Technology Incorporated. Since October 1991, he has served as CEO of Microchip and since October 1993, as Chairman of the Board of Directors of Microchip. Since April 2010, he has served as President and CEO of SST subsidiary. Since May 2004, he has been a member of the Board of Directors of Xyratex Ltd., a publicly held U.K. company that specializes in storage and network technology. In September 2004, Mr. Sanghi was appointed to the Board of Trustees of Kettering University in Flint, Michigan. In May 2007, Mr. Sanghi was appointed to the Board of Directors of FIRST Organization, a not-for-profit public charity founded in 1989 to develop young people's interest in science and technology.

Age: 56

Education:

University of Massachusetts, MS (Electrical and Computer Engineering)
Punjab University, BS (Electronics)

Compensation/Salary:$590,002

Compensation Currency: USD

Social:

Matthew W. Chapman

Independent Director

Director/Board Member

Biography:

Mr. Matthew W. Chapman is Independent Director of Microchip Technology Inc., since May 1997. Since December 2006, he has served as President and CEO of Northwest Evaluation Association, a not-for-profit education service organization providing computer adaptive testing for millions of students throughout the United States. From January 2002 to February 2006, he served as President and CEO of Centrisoft Corporation, a privately held company specializing in providing software for application performance management. From August 2000 to January 2002, Mr. Chapman served as an advisor to early-stage technology companies in connection with developing business plans and securing funding. In his career, Mr. Chapman has served as CEO and Chairman of Concentrex Incorporated, a publicly held company specializing in supplying software solutions and service to U.S. financial institutions. Mr. Chapman also serves on the Board of Directors of the Oregon Business Association and the Portland Schools Foundation, and on the Board of Regents of the University of Portland.

Age: 61

Education:

University of Portland, bachelor's (Economics)
University of Oregon Law School, JD

Compensation/Salary:$185,237

Compensation Currency: USD

L. B. Day

Independent Director

Director/Board Member

Biography:

Mr. L. B. Day is Independent Director of Microchip Technology Inc., since December 1994. Mr. Day serves as President of L.B. Day & Company, Inc., a consulting firm whose parent company he co-founded in 1977, which provides strategic planning, strategic marketing and organization design services to the elite of the high-technology world. He has written on strategic planning and is involved with competitive factor assessment in the semiconductor and other technology market segments, geared to helping client organizations incorporate competitive factor assessment findings into their strategic plans. He has served as a board member or as an advisor to many public and private boards, recently including the Board of be-INFLUENTIAL, a web marketing organization.

Age: 67

Albert J. Hugo-Martinez

Independent Director

Director/Board Member

Biography:

Mr. Albert J. Hugo-Martinez is Independent Director of Microchip Technology Inc., since October 1990. Since February 2000, he has served as CEO of Hugo-Martinez Associates, a consulting and advisory firm. In December 2003, Mr. Hugo-Martinez founded HVVi Semiconductor, Inc., a privately held company which develops CMOS High Voltage/Frequency RF transistors, and since that time has been a member of its Board of Directors. Since July 2004, he has also been a member of the Board of Directors of Reaction Design, a privately held company that specializes in software engine design simulation. In his career, Mr. Hugo-Martinez has previously served in executive positions for the following public companies: COO and Executive VP of Burr-Brown Corp. from June 1979 to July 1987, VP GM at TRW from July 1987 to September 1988, CEO of Applied Micro Circuits Corporation from September 1988 to October 1995 and President and CEO of GGTI Corporation from March 1996 to April 1998. Mr. Hugo-Martinez has previously served on the public company boards of Amkor Technology, Inc. from March 2003 to May 2004, ON Semiconductor Corp. from November 1999 to February 2001 and Ramtron International Corporation from May 2001 to October 2004.

Age: 66

Education:

Northern Arizona University, BSEE
University of Arizona, MSEE

Social:

Wade F. Meyercord

Independent Director

Director/Board Member

Biography:

Mr. Wade F. Meyercord is Independent Director of Microchip Technology Inc., since June 1999. Since October 2002, he has served as President of Meyercord & Associates, Inc., a privately held management consulting firm specializing in executive compensation matters and stock plan consulting for technology companies, a position he previously held part time beginning in 1987. Mr. Meyercord has been a member of the Board of Directors of Endwave Corporation, a publicly held company, since March 2004. Mr. Meyercord served as a member of the Board of Directors of California Micro Devices Corporation, a publicly held company, from January 1993 to October 2009 and Magma Design Automation, Inc., a publicly held company, from January 2004 to June 2005. From June 1999 to October 2002, Mr. Meyercord served as Sr. VP and CFO of Rioport.com, a privately held Internet applications service provider for the music industry.

Age: 71

Education:

Syracuse University, MBA (Engineering Administration)
Purdue University, BS (Mechanical Engineering)

Executives

Name

Title

Function

Steve Sanghi

Chairman of the Board, President, Chief Executive Officer

Chief Executive Officer

Biography:

Age: 56

Education:

University of Massachusetts, MS (Electrical and Computer Engineering)
Punjab University, BS (Electronics)

Compensation/Salary:$590,002

Compensation Currency: USD

Social:

Stephen V. Drehobl

Vice President - Security, Microcontroller and Technology Division

Division Head Executive

Biography:

Mr. Stephen V. Drehobl is Vice President - Security, Microcontroller and Technology Division of Microchip Technology Inc., since July 2001. He has been employed by Microchip since August 1989 and has served as a Vice President in various roles since February 1997. Mr. Drehobl holds a Bachelor of Technology degree from the University of Dayton.

Age: 50

Education:

University of Dayton, B

Compensation/Salary:$215,169

Compensation Currency: USD

Richard J. Simoncic

Vice President - Analog and Interface Products Division

Division Head Executive

Biography:

Mr. Richard J. Simoncic is Vice President - Analog and Interface Products Division of Microchip Technology Inc., since September 1999. From October 1995 to September 1999, he served as Vice President in various roles. Joining Microchip in 1990, Mr. Simoncic held various roles in Design, Device/Yield Engineering and Quality Systems. Mr. Simoncic holds a B.S. degree in Electrical Engineering Technology from DeVry Institute of Technology.

Age: 48

Education:

DeVry University, BS (Electrical Engineering Technology)

Compensation/Salary:$163,184

Compensation Currency: USD

Social:

Barbara Alvarez

Sales Operations, Finance

Operations Executive

Shawn Bachali

Production Operations Manager

Operations Executive

Randall L Drwinga

Vice President-Memory Products Division

Operations Executive

Joe Fernandez

Director Test Operations (Assy)

Operations Executive

Social:

Michael A Finley

Vice President-Fab 2 Operations

Operations Executive

Social:

David S. Lambert

Vice President - Fab Operations

Operations Executive

Biography:

Mr. David S. Lambert is Vice President - Fab Operations of Microchip Technology Inc., since November 1993. From 1991 to November 1993, he served as Director of Manufacturing Engineering, and from 1989 to 1991, he served as Engineering Manager of Fab Operations. Mr. Lambert holds a B.S. degree in Chemical Engineering from the University of Cincinnati.

Age: 60

Education:

University of Cincinnati, BS (Chemical Engineering)

Compensation/Salary:$208,334

Compensation Currency: USD

Ganesh Moorthy

Chief Operating Officer

Operations Executive

Biography:

Mr. Ganesh Moorthy is Chief Operating Officer of Microchip Technology Inc. Mr. Moorthy has served as Chief Operating Officer for Microchip Technology Incorporated since June 2009. Mr. Moorthy served as Executive Vice President from October 2006 to May 2009. From November 2001 to October 2006 Mr. Moorthy served as Vice President of several Microchip divisions. Mr. Moorthy holds an M.B.A. in marketing from the National University, Sacramento, Calif.; a B.S. degree in electrical engineering from the University of Washington, Seattle, Wash.; and a B.S. degree in physics from the University of Bombay, Bombay, India.

Age: 52

Education:

National University, MBA (Marketing)
University of Washington, BS (Electrical Engineering)
University of Mumbai, BS (Physics)

Compensation/Salary:$279,596

Compensation Currency: USD

Social:

Thon Becker

Technical Administrator

Administration Executive

Renata Carlson

Field Sales Administrator

Administration Executive

Diana Carroll

Senior Field Sales Administrator

Administration Executive

Tiffany Hagert

Information Systems Administrator Chandler

Administration Executive

Social:

Gina Helseth

Worldwide Automotive Sales and Marketing Administrator

Administration Executive

Social:

Beverly Painter

Senior Human Resources Administrator

Administration Executive

Kimberly Van Herk

Managing Counsel & Corporate Secretary

Administration Executive

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James Eric Bjornholt

Chief Financial Officer, Vice President

Finance Executive

Biography:

Mr. James Eric Bjornholt is Chief Financial Officer, Vice President of Microchip Technology Inc. Mr. Bjornholt has served as Vice President of Finance since 2008 and as Chief Financial Officer since January 1, 2009. He has served in various financial management capacities since he joined Microchip in 1995. Mr. Bjornholt holds a Masters degree in Taxation from Arizona State University and a B.S. degree in accounting from the University of Arizona.

Age: 41

Education:

Arizona State University, M (Taxation)
University of Arizona, BS (Accounting)

Compensation/Salary:$197,169

Compensation Currency: USD

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Linda Hoaglin

Director of Finance

Finance Executive

Wes Worrel

Senior Engineer - Finance

Finance Executive

William Yang

Vice President-Pacific Rim Finance

Finance Executive

Stacy Bonham

Account Representative

Accounting Executive

Patrick Johnson

Director of Strategic Global Accounts

Accounting Executive

Ed Wilson

Accounting Manager

Accounting Executive

Kimberly Kennedy

Assistant Controller

Controller

Ranelle Berens

Payroll Supervisor

Benefits & Compensation Executive

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Diane Carpenter

Human Resources Manager

Human Resources Executive

Lauren A Carr

Vice President-Human Resources

Human Resources Executive

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Gary Mcdaniel

Human Resource Manager

Human Resources Executive

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Jennifer Myers

Manager Human Resource

Human Resources Executive

Bengt Larsson

Senior Technical Training Engineer

Training Executive

Mark Russell

Employee Devel-Sales Training

Training Executive

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Chris Appleton

Director Sales; Manager

Sales Executive

Fadi Atallah

Field Sales Engineer

Sales Executive

Ramesh Babu

Sales Manager

Sales Executive

Daniel Bacon

Regional Distribution and Sales Representative Manager

Sales Executive

James Baldwin

Director Sales

Sales Executive

Olivier Barbot

Senior Field Sales Engineer

Sales Executive

Debbie Benson

Director Sales

Sales Executive

Tom Bianchi

District Sales Manager

Sales Executive

Linda Bousquet

Isr Inside Sales Representative

Sales Executive

Paul R Breault

VP-Global Sales Support & Electronic Manufacturing Systems

Sales Executive

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Eh Chen

Director of Sales

Sales Executive

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William Cizek

Senior Field Sales Engineer

Sales Executive

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Shane Crandall

Senior Field Sales Engineer

Sales Executive

Tom Estrem

Director Sales

Sales Executive

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Dan Geary

Senior Field Sales Engineer

Sales Executive

Michelle Hale

Regional Sales Manager - Southwest

Sales Executive

Joseph R Krawczyk

Vice President-Far East Sales

Sales Executive

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Dan Levasseur

Senior Regional Sales Manager

Sales Executive

Travis Linton

Field Sales Engineer

Sales Executive

Mitchell R. Little

Vice President - Worldwide Sales and Applications

Sales Executive

Biography:

Mr. Mitchell R. Little is Vice President - Worldwide Sales and Applications of Microchip Technology Inc., since July 25, 2000. He has been employed by Microchip since 1989 and has served as a Vice President in various roles since September 1993. Mr. Little holds a B.S. degree in Engineering Technology from United Electronics Institute.

Age: 60

Education:

United Electronics Institute, BS (Engineering Technology)

Compensation/Salary:$273,332

Compensation Currency: USD

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Jack Malone

Senior Field Sales Engineer

Sales Executive

Linda Mcdaniel

Director Sales

Sales Executive

Kevin Mcgunnigle

Director Sales

Sales Executive

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Tom Montero

Inside Sales

Sales Executive

Erin Mullins

Sales Manager

Sales Executive

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Jeff Nowotny

Sales Engineer

Sales Executive

Traci Obrien

Director Sales

Sales Executive

Dale Overton

Account Executive

Sales Executive

Michael Pennington

District Sales Manager

Sales Executive

Reuben Phillips

Inside Sales Engineer

Sales Executive

Bruce Poston

Director Sales

Sales Executive

Stephanie Rapp

Inside Sales Representative

Sales Executive

Mike Riley

Field Sales Engineer

Sales Executive

Mario Rivera

Field Sales Engineer

Sales Executive

Jon Rodman

Field Sales Engineer

Sales Executive

Bonnie Rositas

Field Sales Engineer

Sales Executive

Bill Scott

Senior Field Sales Engineer

Sales Executive

Mike Sorrentino

Field Sales Engineer

Sales Executive

Dorothy Styx

Sales Analyst

Sales Executive

Rick Sweringen

Senior Field Sales Engineer

Sales Executive

Dwayne Talley

Sales Manager

Sales Executive

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Gary Valencia

Field Sales Engineer

Sales Executive

Craig Vanley

Director Sales

Sales Executive

Dan Wildes

Senior Field Sales Engineer

Sales Executive

Laura Anderson

Global Sales Support

International Sales Executive

Mathew B Bunker

Vice President-Pacific Rim Manufacturing Operations

International Executive

Clint Eastman

Global Network Engineer

International Executive

Norman Chan

Asia Pacific Tactical Marketing Manager

Marketing Executive

Tim Curella

Picmicro Tactical Marketing

Marketing Executive

Juan Gutierrez

Sdp Marketing Manager

Marketing Executive

Lee Koh

Marketing Manager

Marketing Executive

Brayn J Liddiard

Vice President-Analog & Interface Marketing

Marketing Executive

Frank Monaco

Marketing

Marketing Executive

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Clayton Pillion

Marketing Manager

Marketing Executive

Peter Sorrells

Senior Marketing Managerrmmd Division

Marketing Executive

Daniel L Termer

Vice President-Vertical Markets Group

Marketing Executive

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James Xu

Marketing Manager, Professional

Marketing Executive

Eric Lawson

Manager-Public Relations

Corporate Communications Executive

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Sunil Lalani

Public Relations Software Engineer

Public Relations Executive

Dan Butler

Information Technology Executive

Information Executive

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Suzanne Carney

Information Systems

Information Executive

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Jian Ding

Information Technology Manager

Information Executive

Matthew Gibson

Systems Administrator

Information Executive

Jim Gwynn

Corporate Data Center

Information Executive

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Joseph Medina

Information Systems Software Engineer

Information Executive

Andy Morris

Management Information Systems Manager

Information Executive

Fred Mortensen

Database Administrator

Information Executive

Arthur Navarro

Information Technology Manager

Information Executive

Jay Ortiz

Site Information Systems Manager-Tempe

Information Executive

Robert Owen

Information Systems

Information Executive

Education:

Thunderbird School of Global Management, MBA

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Brett Sherman

Information Technology

Information Executive

Jason So

Senior Information Systems Specialist

Information Executive

Robert Williams

Information Systems

Information Executive

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Nancy Winters

Business Systems Analyst

Information Executive

Bill Lewis

Information Systems Manager

Network Management Executive

Tony Myles

Senior Systems Engineer

Network Management Executive

Darren Sasso

Network Engineer

Network Management Executive

Anthony Stock

Senior Marcom Print and Web Designer, E...

Network Management Executive

Alan Abbott

Facility Engineer