MICROCHIP

Analysis of Microchip share price

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If you are interested in the Microchip Group share and wish to trade it online, we offer you, in this page, to find all the information you will need to set up your analysis of this stock. We will introduce you to the Microchip company and its activities in more detail, tell you about its direct competitors in its sector of activity as well as its recent partnerships. We will also explain to you how to succeed in your fundamental analysis of this stock by studying the right data and news.

Elements that can influence the price of this asset:

Analysis N°1

We will of course be watching the growth of the semiconductor industry, on which much of the group's business depends.

Analysis N°2

Technological innovations made by Microchip will also help it stand out from the competition, so you should follow this news closely.

Analysis N°3

Similarly, we will keep an eye on the strategic initiatives that the group may implement, such as partnerships or acquisitions.

Analysis N°4

We will also monitor the competition in this sector, which is rather high, and the evolution of the market shares of each of the major players in the sector.

Analysis N°5

Major technological changes should also be followed closely to ensure that Microchip is able to adapt effectively to them.

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General presentation of Microchip

We now propose that you find out who Microchip really is and what its detailed activities and main sources of profit are. Indeed and by having a good knowledge of this company, you will be able to understand how it is likely to perform in the long run.

The Microchip Technology Group is an American company specialising in the electronics sector and, more specifically, in the design, production and sale of integrated semiconductors for the household goods, automotive, computer and telecommunications sectors.

To better understand Microchip's activities, it is possible to divide them into different segments according to the share of turnover they generate and in this way

  • Microcontrollers generate 54.6% of this group's sales, with the development of security integrated circuits and microcontroller programming tools for specific applications.
  • Interface and analog products are in second place with 28.6% of the group's turnover.
  • Memory products such as electrical erasable and reprogrammable memories or EEPROMs accounted for 3.4% of sales.
  • The technology services offered by the group generate 2.5% of turnover.
  • Finally, the remaining 10.9% of the company's turnover comes from other products and services.

Currently, Microchip operates no less than 16 production sites, mainly based in the USA with 10 sites, in Germany with two sites as well as in Thailand, the Philippines, France and Ireland.

It is also interesting to know the geographical distribution of the revenues of this group which currently generates 25.3% of its sales in the United States, 51.8% in Asia and 22.9% in Europe.

Analysis of Microchip share price
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The major competitors of Microchip

We now propose to discover the direct economic environment of Microchip with a quick presentation of its main competitors on the market and therefore of its direct adversaries.

Intel Corporation 

This other American company is currently the world's leading semiconductor manufacturer in terms of revenue. It produces microprocessors, motherboards, flash memory and graphics processors. This company is listed on the Nasdaq.

Broadcom Corporation

This American company specializes in the electronics industry and develops semiconductors for the production of telecommunications equipment.

NVidia Corporation 

This American group also specializes in the design of graphics processors, graphics cards and graphics chips for computers and game consoles.

AMD

Advanced Micro Devices (AMD) is another American producer of semiconductors, microprocessors and graphics cards and one of the major players in this market worldwide.


The major partners of Microchip

If the Microchip Group has many enemies in its sector of activity, it also has some allies on which it can count to support its growth. Indeed, the group regularly signs strategic partnerships with other companies and we propose to you to discover here two examples of operations of this type:

Thumelec

First of all, Microchip Group has been the partner of Thurmelec since 2015. Moreover, the two companies signed another partnership in 2017 as Thumelec was registered by the American semiconductor giant as a Design House Partner. This is therefore a strategic partnership with the objective of ensuring the sustainability of industrial studies that are entrusted to Microchip's customers. During this year 2017, the Thumelec group was thus able to develop 13 new products equipped with Microchip's microcontrollers.

Microsemi

In 2018 that is a little more recently, it was a merger deal that was conducted by Microchip in the United States. Indeed, the company announced the acquisition of its competitor Microsemi, which is a supplier of semiconductor equipment for the military and aerospace sectors. The amount of this operation reached 8.35 billion dollars or 6.8 billion euros.

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Frequently Asked Questions

When was Microchip's initial public offering?

On March 19, 1993, Microchip completed its initial public offering or IPO. On that date, and therefore at the time of its IPO, the price of a Microchip share was $13 before the split or $0.57 after adjustment for all stock splits. But since that date, and as you can see on the various stock market charts, the price of this share has changed significantly.

Where and how to consult the financial results of the Microchip company?

Of course, it is possible to follow Microchip's financial results, whether quarterly or annual, directly from the company's website and on the page dedicated to investor relations, in the financial releases section. These publications are made immediately after the publication of the official press release and will give you all the details about the results of the group and its objectives.

What is Microchip's dividend policy?

Currently, the Microchip Group pays a dividend to its shareholders and has done so for several years now. You can view the history of this dividend on the company's website. It is the Board of Directors of Microchip that evaluates the activities of the group and determines the amount of this dividend each year and each quarter. Microchip does not have a dividend reinvestment program.

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