Microchip and AVIVA Links demonstrate ASA-ML chipset interoperability

CHANDLER, Ariz. - Microchip Technology Inc. (NASDAQ:MCHP), a technology company with a market capitalization of $35.94 billion and annual revenue of $4.24 billion, announced Tuesday that its ASA Motion Link (ASA-ML) chipsets have successfully demonstrated interoperability with AVIVA Links’ technology, marking a significant milestone for the Automotive SerDes Alliance’s open standard. According to InvestingPro analysis, the company maintains strong liquidity with a current ratio of 2.31, positioning it well for continued innovation in the automotive sector.

The demonstration validates that ASA-ML chipsets from different vendors can work together seamlessly to deliver scalable, high-speed connectivity for automotive applications. This interoperability addresses the growing demand for standardized solutions in Advanced Driver Assistance Systems (ADAS) and In-Vehicle Infotainment (IVI). With 13 analysts recently revising their earnings estimates upward, InvestingPro data suggests strong market confidence in Microchip’s strategic direction, with net income expected to grow this year.

ASA-ML provides an asymmetric high-speed communications standard supporting transmission up to 16 Gbps for connecting cameras, sensors and displays in vehicles. The standard is gaining traction as automotive manufacturers move away from proprietary serializer/deserializer (SerDes) solutions toward an interoperable ecosystem.

"Achieving robust ASA-ML interoperability with AVIVA Links is a pivotal moment for the Automotive SerDes Alliance and a clear signal to the market," said Kevin So, vice president of Microchip’s communications business unit, according to the press release.

The Automotive SerDes Alliance now counts more than 175 members, including major automakers such as BMW, Ford, GM, Hyundai Kia Motor Company, Stellantis, and Volvo.

Kamal Dalmia, CEO of AVIVA Links, which has announced a pending acquisition by NXP, stated that "proving interoperability with Microchip’s ASA-ML SerDes chipset is an important milestone for the automotive industry."

Microchip’s VS7000 chipset family of ASA-ML serializer/deserializer devices is available for sampling to qualified customers. The devices are designed for automotive applications as well as industrial, medical and machine vision uses.

The multi-vendor interoperability demonstration highlights the maturity of the standard and aims to reduce supply chain risk for automotive manufacturers by eliminating vendor lock-in. While InvestingPro analysis indicates the stock is currently trading above its Fair Value, the company’s strong dividend history - maintaining payments for 24 consecutive years - demonstrates its commitment to shareholder returns. Subscribers can access over 12 additional ProTips and detailed financial metrics in the comprehensive Pro Research Report.

In other recent news, Microchip Technology has introduced its new LAN9645xF and LAN9645xS Gigabit Ethernet Switches, enhancing industrial connectivity with multiple port configurations and advanced networking features. These switches offer 5-, 7-, and 9-port options and can operate in both unmanaged and managed modes. Meanwhile, Microchip Technology’s subsidiary, Silicon Storage Technology, has partnered with Deca Technologies to develop a non-volatile memory chiplet solution, combining advanced technologies to accelerate the adoption of modular systems. In analyst updates, Wells Fargo initiated coverage on Microchip Technology with an Equal Weight rating and a $60.00 price target, noting the company’s potential for earnings recovery. Cantor Fitzgerald has maintained its Neutral rating with a $70.00 price target, citing Microchip as a preferred name in the Analog semiconductor space. Additionally, the semiconductor industry faces challenges as China launches investigations into the US chip sector, affecting companies like Microchip Technology. These developments highlight the dynamic environment in which Microchip Technology operates.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.