Microchip Technology Inc. (MCHP - Free Report) is now focusing on improving driving experience to strengthen its position in producing autonomous vehicle controllers. Toward this purpose, the company recently launched the world’s first-ever three-dimensional (3D) automotive-qualified MGC3140 controllers, to enhance the in-car capability of the drivers.
The new controller is designed to enable users facilitate inputs and provides tracking along with gestures detection in the free-space, which is appropriate for Consumer, Industrial and Automotive applications. Based on Microchip’s patented GestIC technology, the new chip is capable of detecting any distractions on part of drivers and this will help avert possible mishaps, consequently slashing the rate of road accidents.
The new MGC3140 air gesture controller offers a detection range of 0-20 cm and is capable of an operating temperature range between -40 to +125 degrees Celsius. These features provide solution for driving High Voltage (“HV”) outputs, aiding the customers across varied Human Machine Interface (“HMI”) applications along with other technical support. The device ensures safer navigation providing customers with cost-effective gesture solution without compromising on the interior design of a vehicle.
The MGC3140 is supported by Microchip’s new Electromagnetic Compatibility (“EMC”) resistance and is a versatile companion chip to advance multi-touch performance.
Microchip's MGC3140 features high adaptability and can be used in diverse products such as navigating infotainment systems, sun shade operation, interior lighting and other industrial controls. With such innovative and proprietary products, the company continues to capitalize on its business potential.
Microcontrollers are poised to grow significantly due to their versatile application in various end markets, such as communications, industrial, automotive, computer and consumer. Microchip develops and manufactures microcontrollers, memory and analog and interface products for embedded control systems, which are small, low-power computers designed to perform specific tasks.
With this launch, the company is in the process of transforming itself into a purely microcontroller-based company, which it believes will improve its cost structure and unlock value.
Per a Technavio report, as revealed by The Economic Times, the global autonomous vehicle sensors market is expected to grow at a CAGR of 115% by 2021 to reach 196.07 million units.
Per a ResearchandMarkets report, the global autonomous vehicle sensor market is projected to grow at a CAGR of approximately 105% from 2016 to 2023 driven by rising demand of autonomous vehicles.
Per a MarketsandMarkets report, “The semi-autonomous and autonomous vehicles market, in terms of volume, is projected to grow at a CAGR of 21.36% from 2017 to 2022 (base year: 2016) and 68.94% from 2025 to 2030 (base year: 2024) respectively.”
The aforementioned reports strengthen the prospects of investment opportunities in autonomous space. We believe the launch augurs well for Microchip and will aid the company in realizing its business goals.
Shares of Microchip have gained 19.9% in the last year, outperforming the industry’s rally of 16.6%. This outperformance can primarily be attributed to solid demand witnessed by the company’s product portfolio and synergies from accretive acquisitions. End-market diversification and operational efficiencies are other tailwinds.
Microchip is benefiting from robust demand for 8-bit, 16-bit and 32-bit microcontrollers. We believe that Microchip's expanding product portfolio driven by new launches will continue to expand customer base.
Zacks Rank & Other Stocks to Consider
Microchip sports a Zacks Rank #1 (Strong Buy).
Some other top-ranked stocks in the broader technology sector include Western Digital (WDC - Free Report) , Intel Corporation (INTC - Free Report) and Micron Technology, Inc. (MU - Free Report) . All the three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Western Digital, Intel and Micron have a long-term expected EPS growth rate of approximately 19%, 8.4% and 8.2%, respectively.
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