Microchip adds former AMD president to its board

CHANDLER, Ariz. - Microchip Technology Incorporated (NASDAQ:MCHP), a key player in embedded control solutions, has announced the appointment of Victor Peng to its Board of Directors. Peng, known for his tenure as President of Advanced Micro Devices, Inc. (NASDAQ:AMD), brings over four decades of industry experience to the Microchip board. According to InvestingPro data, Microchip has maintained dividend payments for 23 consecutive years and currently offers a 3.5% dividend yield, demonstrating strong financial stability.

Peng’s extensive background includes leadership roles at Xilinx (NASDAQ:XLNX), where he served from 2008 until 2022, culminating in positions as president, CEO, and board member. Following his time at Xilinx, Peng joined AMD in 2022 and continued there until his retirement in 2024. His addition to the Microchip board is set to take effect on February 10, 2024.

Microchip’s President and CEO, Steve Sanghi, highlighted Peng’s industry knowledge, particularly in technology, strategy, and operations, as invaluable assets that will contribute to the Board’s expertise. Sanghi expressed enthusiasm for the insights Peng is expected to offer, which will aid in guiding Microchip’s strategic direction.

Peng also currently serves on the board of KLA Corporation since February 2019, further underscoring his vast experience in the semiconductor industry. Upon his appointment, Peng shared his honor at the opportunity to impact Microchip’s strategic plans and objectives positively.

Microchip Technology Incorporated provides smart, connected, and secure embedded control solutions, with a product portfolio that supports a diverse clientele of approximately 112,000 customers. The company operates across various markets, including industrial, automotive, consumer, aerospace and defense, communications, and computing. Based in Chandler, Arizona, Microchip is known for its strong technical support, reliable delivery, and quality products. The company maintains a solid gross profit margin of 60% and is scheduled to report its next earnings on February 6, 2024. Investors seeking deeper insights into Microchip’s financial health and growth prospects can access comprehensive analysis through the Pro Research Report available on InvestingPro.

This board appointment is based on a press release statement from Microchip Technology Inc .

In other recent news, Microchip Technology Incorporated has been making strategic moves across its operations. The company announced the appointment of Victor Peng, former AMD President, to its Board of Directors, a move expected to fortify its leadership and strategic direction. In other developments, Microchip Technology has unveiled the MTCH2120 touch controller, a low-power, water-tolerant device that enhances touch button functionality.

Recently, the company revealed its decision to close its 200mm Fab 2 in Tempe, Arizona, a strategic step that is part of a broader restructuring plan. This move is projected to result in annual cost savings of approximately $90 million, with effects expected to be visible from the June 2026 quarter. Despite this restructuring, Needham has maintained its Buy rating and $85.00 price target for the company.

Stifel, another analyst firm, revised its price target for Microchip Technology to $87 from $90, while sustaining a Buy rating on the shares. This adjustment was influenced by the company’s recent announcement that its fiscal third-quarter 2025 earnings are projected to be near the lower end of the initial guidance of $1.025 billion. Lastly, KeyBanc Capital Markets adjusted its outlook on Microchip Technology, reducing its price target to $90 from $95, but maintaining an Overweight rating on the stock.

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