Microchip Technology Inc

Company facts

Industry

Semiconductors & Related Devices

Headquarters

Chandler, Arizona

Most recent report

10-Q, filed Nov 5, 2026

Incorporated

Delaware

Filings on record

1,005+ filings

On EDGAR

CIK 827054

Fiscal year ends

March

Filer status

Large accelerated filer

What to read: Sep 2026 10-Q

SECSift found 4 of 13 sections worth reading, with 0 positive, 12 notable, and 7 negative flags.

• Financial Statements (Item 1)

  Balance sheet, debt, deferred revenue, and tax dispute all carry material company-specific numbers.
  Notable

  • Deferred revenue fell to $409M from $461M; $301M is from long-term supply agreements (LTSAs).
  • Long-term debt is $5.5B; $402M matures in FY2027, but company plans to refinance via credit facility.
  • No stock buybacks in H1 FY2027; $1.56B remains authorized under the repurchase program.
  • Series A Preferred Stock (7.5% coupon) will convert to common stock by March 2028, potentially diluting holders.
  • Acquired Vorago Technologies for $93M cash in October 2026, adding radiation-hardened MCUs.
  Negative

  • Malaysian tax dispute could cost up to $473M if IRB prevails; outcome uncertain.

• Management's Discussion (Item 2)

  Revenue up 42%, gross margin jumped 10 points, but a $473M tax dispute is unresolved.
  Notable

  • Distributor Arrow Electronics accounted for 11% of net sales in H1 2026, a concentration risk.
  • Cash from operations was $930.7M in H1 2026, up sharply from $363.7M a year ago, funding dividends and debt paydown.
  Negative

  • Malaysian tax dispute could cost up to $473.2M if the company loses; it is contesting the assessment.

• Risk Factors (Item 1A)

  Quantified risks: 66% foundry reliance, 76% foreign sales, $5.55B debt, IRS/Malaysia tax disputes, unabsorbed capacity charges.
  Notable

  • Two cyber incidents in Sep 2026 and Aug 2024; no material impact so far, but risks persist with no cyber insurance.
  • Top 10 direct customers accounted for ~11% of revenue in H1 FY2027, indicating moderate customer concentration.
  • IRS settlement reached for fiscal 2007-2015 transfer pricing disputes; final stipulations uncertain but could complete in 12 months.
  Negative

  • 66% of net sales from outside foundries in H1 FY2027, up from 65% in FY2026, increasing supply chain dependency.
  • 76% of net sales to foreign customers in H1 FY2027, with 17% in China and 14% in Taiwan, exposing to geopolitical risks.
  • $65.1M unabsorbed capacity charges in H1 FY2027 from below-normal factory utilization, following $200.8M in FY2026.
  • Distributor sales rose to 51% of net sales in H1 FY2027 from 47% in FY2026, increasing channel dependency.
  • Principal debt of $5.55B as of Sep 30, 2026; no share repurchases in Sep 2026 quarter; credit rating downgraded in March 2025.

• Other Information (Item 5)

  Two separate cybersecurity incidents in September 2026; director resignation.
  Notable

  • Director Victor Peng resigned Nov 3, 2026 due to time commitments as CEO of PsiQuantum; no disagreement.
  • Two separate cybersecurity incidents detected on Sep 1 and Sep 19, 2026; systems isolated, investigation ongoing.

What changed: Sep 2026 vs. Jun 2026

About 2% of MCHP's Sep 2026 10-Q is new information. 15 paragraphs were added, 145 changed, and 21 removed. Below are the most important lines SECSift identified.

• Item 2 54
• Item 1A 36
• Item 1 28
• Item 5 3
• Item 6 2
• Item 3 2
• Item 4 1