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CHANDLER/SAN JOSE - Deca Technologies and Silicon Storage Technology (SST), a subsidiary of Microchip Technology Inc. (NASDAQ:MCHP), announced Wednesday they have formed a strategic partnership to develop a non-volatile memory chiplet package aimed at accelerating customer adoption of modular, multi-die systems. According to InvestingPro data, Microchip, currently valued at $35 billion, has attracted positive attention from analysts, with 13 analysts recently revising their earnings expectations upward for the upcoming period.
The collaboration combines Deca’s M-Series fan-out and Adaptive Patterning technologies with SST’s SuperFlash embedded flash technology to create a comprehensive solution for designing, verifying, and commercializing NVM chiplets. With Microchip’s strong financial position - including liquid assets exceeding short-term obligations and a track record of maintaining dividend payments for 24 consecutive years - the company appears well-positioned to support this strategic initiative.
The joint offering provides customers with a bundled package that includes SST’s SuperFlash technology along with interface logic and physical design elements needed for a self-contained chiplet. This is complemented by Deca’s Adaptive Patterning-based redistribution layer design rules, simulation flows, test strategies, and manufacturing paths through qualified partners.
"Chiplet integration is reshaping how the industry thinks about performance, scalability and time to market," said Robin Davis, VP of Strategic Engagements & Applications at Deca, according to the press release.
Mark Reiten, Vice President of Microchip’s licensing business unit, noted growing customer interest in chiplet-based solutions as they "push the boundaries of Moore’s Law."
The companies stated that chiplet technology offers significant advantages by enabling semiconductor designers to reuse existing IP and mix advanced process nodes with less expensive legacy geometries. This approach allows for the selection of the most appropriate die technology for specific functions, potentially providing a more efficient and economical pathway for semiconductor innovation.
The partnership aims to support customers throughout the development process from early design through qualification and prototype manufacturing, with both companies providing joint support to help bring chiplet solutions to market.
Customers interested in the NVM chiplet solutions can contact SST or Deca directly for pricing and availability information, according to the press release. For investors seeking deeper insights into Microchip’s financial health and growth prospects, InvestingPro offers comprehensive analysis, including 12 additional ProTips and detailed valuation metrics through its Pro Research Report, available as part of the subscription covering 1,400+ top US stocks.
In other recent news, Microchip Technology has reported financial results that have caught the attention of several analyst firms. The company announced better-than-expected results with guidance that aligns with market expectations, showing a strong recovery from its previous quarter. Susquehanna noted a clear increase in demand, with all key performance indicators improving and both direct and distribution sales rising sequentially for the first time in two years. Despite this positive outlook, TD Cowen lowered its price target for Microchip Technology to $60 from $75, maintaining a Hold rating due to investor disappointment over the modest recovery.
Conversely, Needham raised its price target from $66 to $77, citing an improving demand environment and maintaining a Buy rating. Morgan Stanley also adjusted its price target upward to $63 from $61, highlighting that Microchip’s quarter-over-quarter revenue growth was the highest among its peers this earnings season. Meanwhile, Cantor Fitzgerald reiterated its Neutral rating with a $70 price target, identifying Microchip as a preferred name in the Analog semiconductor space. These recent developments reflect a mixed but generally positive outlook from analysts on Microchip Technology’s performance and future prospects.
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