Businessweek

Microchip Technology Incorporated develops and manufactures specialized semiconductor products used by the customers for various embedded control applications. The company also licenses Flash-IP solutions that are incorporated in a range of products. Products The company’s focus is on embedded control solutions, including microcontrollers, development tools, analog and interface products, memory products, and technology licensing. Microcontrollers The company offers a family of proprietary microcontroller products marketed under the PIC brand name. With approximately 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 the company’s 16-bit microcontroller offering. Its dsPIC DSC families integrate the control features of 16-bit microcontrollers with the computation capabilities of digital signal processors, along with various peripheral functions making them suitable for various embedded control applications. Its dsPIC product family offers a suite of hardware and software development tools, software application libraries, development boards, and reference designs to expedite the customer application development cycle. Development Tools The company offers a set of application development tools. These tools enable system designers to program a PIC microcontroller and dsPIC DSC for specific applications. The company’s 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 that provide in-circuit emulation capability. Majority independent companies also develop and market application development tools that support the company’s standard microcontroller product architecture. There are approximately 200 third-party tool suppliers worldwide whose products support its proprietary microcontroller architecture. Analog and Interface Products The company’s analog and interface products consist of various 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 shipped to approximately 18,500 end customers. The company markets and sells its analog and interface products into its microcontroller customer base, to customers who use microcontrollers from other suppliers and to customers who use other products that might not fit its traditional PIC microcontroller and memory products customer base. The company markets these products based on an application segment approach targeted to provide customers with application solutions. Memory Products The company’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 SRAM memories. Serial EEPROMs, Serial Flash memories, and Serial SRAM have a very low I/O pin requirement, permitting production of very small footprint devices. The company sells its memory products primarily into the embedded control market, complementing its microcontroller offerings. Technology Licensing The company’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. The company licenses its SuperFlash technology to foundries, integrated device manufacturers, and design partners worldwide for use in the manufacture of their advanced microcontroller products, gate array, RF, and analog products that require embedded flash. Customers As of March 31, 2012, the company had approximately 74,000 customers. Its product portfolio targets various applications worldwide and a demand for designs in the automotive, communications, computing, consumer, and industrial control markets. Sales and Distribution The company markets its products worldwide primarily through a network of direct sales personnel and distributors. Its direct sales force focuses on various strategic accounts in three geographical markets, including the Americas, Europe, and Asia. The America’s sales include sales to customers in the U.S., Canada, Central America, and South America. The company also operates in Taiwan and China (including Hong Kong). Patents, Licenses, and Trademarks The company maintains a portfolio of U.S. and foreign patents, expiring on various dates between 2012 and 2030. It also has various additional U.S. and foreign patent applications pending. Research and Development The company’s research and development activities focus on the development of microcontrollers, digital signal controllers, Serial EEPROM memory, NOR FLASH Memory, Embedded FLASH technologies, RF products, analog and interface products, development systems, user interface products, software, and application-specific software libraries. It is also developing design and process technologies to enable new products and innovative features. For the period ended March 31, 2012, the company’s research and development expenses were $182.7 million. History Microchip Technology Incorporated was founded in 1989. The company was incorporated in Delaware in 1989.