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Microchip (MCHP) Bolsters Supply Chain With TSMC Partnership
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Microchip Technology (MCHP - Free Report) recently announced an expanded partnership with the world’s leading semiconductor foundry, TSMC, to bolster its supply chain resilience.
MCHP’s collaboration with TSMC involves the establishment of a specialized 40 nm manufacturing capacity at Japan Advanced Semiconductor Manufacturing (JASM), a subsidiary of TSMC based in Kumamoto Prefecture, Japan.
The initiative aims to reduce potential disruptions in the supply chain as Microchip focuses on enhancing its internal manufacturing capabilities and geographical diversity.
Microchip’s collaboration with TSMC and the addition of JASM’s wafer capacity strengthens its ability to meet customer demands across diverse global end-markets, including automotive, industrial and network applications.
Microchip Technology Incorporated Price and Consensus
Microchip’s latest collaboration with TSMC for specialized 40 nm manufacturing at JASM Japan demonstrates its commitment to bolstering its supply chain resilience and catering to a diverse global market.
Expanding portfolio has been a key catalyst. In the third quarter, MCHP announced its Detroit Automotive Technology Center, featuring new high-voltage and E-Mobility labs catering to automotive clients for design development and optimization.
Further solidifying its Trust Portfolio platform, MCHP recently launched the ECC608 TrustMANAGER with Kudelski IoT keySTREAM, SaaS, which enhances IoT security and facilitates dynamic provisioning and management of cryptographic credentials for interconnected systems.
In the third quarter of fiscal 2024, MCHP launched its latest TrustAnchor security IC, designed to surpass automotive secure authentication standards, offered as Crypto Authentication or CryptoAutomotive, emphasizing larger key sizes and improved cybersecurity features.
In March, MCHP introduced the CEC1736 TrustFLEX devices, enhancing embedded security solutions with Microchip-signed firmware to streamline integration, National Institute of Standards and Technology (NIST) and Open Compute Project (OCP) standards, and bolster cyber resilience across various industries.
Moreover, MCHP introduced the AVR EB family of microcontrollers to mitigate noise, vibration, and system harness in BLDC motor applications, providing a smaller, more cost-effective solution for sophisticated waveform control and increased efficiency.
Despite a robust and expanding portfolio, persistent inflation and high-interest rates have contributed to a weak macro environment. This has negatively impacted MCHP’s prospects.
Microchip expects net sales to be $1.225-$1.425 billion for the fourth quarter of fiscal 2024. Non-GAAP earnings are anticipated between 46 cents per share and 68 cents.
The Zacks Consensus Estimate for revenues is pegged at $1.33 billion, indicating a 40.57% year-over-year decline. The consensus mark for earnings is pegged at 57 cents per share, suggesting a 65.24% year-over-year decline.
Zacks Rank & Other Stocks to Consider
Microchip currently has a Zacks Rank #5 (Strong Sell).
MCHP’s shares have dropped 1.1% year to date compared with the Zacks Computer & Technology sector's rise of 11.4%.
Image: Bigstock
Microchip (MCHP) Bolsters Supply Chain With TSMC Partnership
Microchip Technology (MCHP - Free Report) recently announced an expanded partnership with the world’s leading semiconductor foundry, TSMC, to bolster its supply chain resilience.
MCHP’s collaboration with TSMC involves the establishment of a specialized 40 nm manufacturing capacity at Japan Advanced Semiconductor Manufacturing (JASM), a subsidiary of TSMC based in Kumamoto Prefecture, Japan.
The initiative aims to reduce potential disruptions in the supply chain as Microchip focuses on enhancing its internal manufacturing capabilities and geographical diversity.
Microchip’s collaboration with TSMC and the addition of JASM’s wafer capacity strengthens its ability to meet customer demands across diverse global end-markets, including automotive, industrial and network applications.
Microchip Technology Incorporated Price and Consensus
Microchip Technology Incorporated price-consensus-chart | Microchip Technology Incorporated Quote
Microchip Benefits From a Strong Portfolio
Microchip’s latest collaboration with TSMC for specialized 40 nm manufacturing at JASM Japan demonstrates its commitment to bolstering its supply chain resilience and catering to a diverse global market.
Expanding portfolio has been a key catalyst. In the third quarter, MCHP announced its Detroit Automotive Technology Center, featuring new high-voltage and E-Mobility labs catering to automotive clients for design development and optimization.
Further solidifying its Trust Portfolio platform, MCHP recently launched the ECC608 TrustMANAGER with Kudelski IoT keySTREAM, SaaS, which enhances IoT security and facilitates dynamic provisioning and management of cryptographic credentials for interconnected systems.
In the third quarter of fiscal 2024, MCHP launched its latest TrustAnchor security IC, designed to surpass automotive secure authentication standards, offered as Crypto Authentication or CryptoAutomotive, emphasizing larger key sizes and improved cybersecurity features.
In March, MCHP introduced the CEC1736 TrustFLEX devices, enhancing embedded security solutions with Microchip-signed firmware to streamline integration, National Institute of Standards and Technology (NIST) and Open Compute Project (OCP) standards, and bolster cyber resilience across various industries.
Moreover, MCHP introduced the AVR EB family of microcontrollers to mitigate noise, vibration, and system harness in BLDC motor applications, providing a smaller, more cost-effective solution for sophisticated waveform control and increased efficiency.
Despite a robust and expanding portfolio, persistent inflation and high-interest rates have contributed to a weak macro environment. This has negatively impacted MCHP’s prospects.
Microchip expects net sales to be $1.225-$1.425 billion for the fourth quarter of fiscal 2024. Non-GAAP earnings are anticipated between 46 cents per share and 68 cents.
The Zacks Consensus Estimate for revenues is pegged at $1.33 billion, indicating a 40.57% year-over-year decline. The consensus mark for earnings is pegged at 57 cents per share, suggesting a 65.24% year-over-year decline.
Zacks Rank & Other Stocks to Consider
Microchip currently has a Zacks Rank #5 (Strong Sell).
MCHP’s shares have dropped 1.1% year to date compared with the Zacks Computer & Technology sector's rise of 11.4%.
Some better-ranked stocks in the broader technology sector are NetApp (NTAP - Free Report) , Bentley Systems (BSY - Free Report) and NVIDIA (NVDA - Free Report) , each sporting Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
NetApp shares have gained 20% in the year-to-date period. NTAP’s long-term earnings growth rate is currently projected at 8.79%.
Bentley Systems shares have declined 3.4% in the year-to-date period. BSY's long-term earnings growth rate is currently projected at 12%.
NVIDIA shares have gained 75.9% in the year-to-date period. NVDA's long-term earnings growth rate is currently projected at 30.93%.