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2018 Fast Forward – Microchip Expert Power Packs the Semiconductor Industry

Microchip Technology
Ganesh Moorthy | President and Chief Operating Officer | Microchip Technology Inc.
  1. How did the semiconductor industry and Microchip perform in 2017?

The semiconductor industry had a very strong year in 2017 with double digit growth that was broad-based. Microchip also had a very strong year with growth that was even higher than the industry as we saw growth in all product lines, all regions of the world and all end markets.

  1. What are Microchip’s views on the global semiconductor industry in 2018?

We believe the semiconductor industry will continue to have many growth drivers that will be present in 2018, although we believe that growth will be at a less torrid pace than what we saw in 2017.

  1. What in your opinion will be the key products, applications and technologies to lead the industry growth in 2018? How does Microchip prepare itself to seize such opportunities?

We expect that the Industrial, Automotive and IoT markets are likely to be the stronger end markets in 2018, and we are extremely well positioned to capitalize on the growth opportunities from these and other markets. Our approach is to be a Total System Solution provider to our customers, bringing together our broad portfolio of solutions to enable our customers to grow through innovation, reducing overall system costs, and achieving fast time to market.

  1. What are some of the challenges Microchip and the industry will possibly face in 2018 and how would you tackle them?

Despite the consolidation, there is no shortage of competition in the markets and product lines we compete in. Our approach remains to manage for consistent growth and profitability (Microchip has been profitable for 108 consecutive quarters as of September 2017). We continue to invest in bringing innovative new solutions to the market, providing outstanding technical support to our clients, adding manufacturing capacity to support our customers’ growth, providing individual products as long as there is demand (customer-driven obsolescence vs End of Lifing) as a service to our customers, and utilizing value engineering where possible to address cost reduction requirements.


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