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CHANDLER, Ariz. - Microchip Technology Inc. (NASDAQ:MCHP), a $40 billion market cap semiconductor company with a track record of 24 consecutive years of dividend payments, announced today a new partnership agreement with Delta Electronics to collaborate on silicon carbide (SiC) power solutions, as companies seek more efficient technologies for artificial intelligence and electrification applications. According to InvestingPro data, the company maintains strong financial health with a current ratio of 2.59, indicating robust operational stability.
Under the agreement, Delta Electronics will implement Microchip’s mSiC products and technology in its designs, with both companies working to accelerate the development of SiC solutions and energy-saving systems.
The partnership will prioritize validation of Microchip’s SiC solutions to expedite implementation in Delta’s designs for markets including AI, mobility, automation and infrastructure. The agreement includes technical training, early access to product samples, and insight into research and development activities. This strategic move comes as Microchip’s stock has shown strong momentum, with a 30% price return over the past six months. InvestingPro analysis reveals 12 additional key insights about the company’s performance and prospects.
"SiC is increasingly important in sustainable power solutions because of its wide-bandgap properties, which enable smaller and more efficient designs for high-voltage, high-power applications at a lower system cost," said Clayton Pillion, vice president of Microchip’s high-power solutions business unit.
Silicon carbide technology has gained importance in power applications due to its ability to operate at higher temperatures and voltages while reducing energy loss compared to traditional silicon-based semiconductors.
Delta Electronics plans to leverage Microchip’s experience in SiC and digital control to accelerate time to market for its solutions in high-growth market segments.
Microchip’s mSiC product portfolio includes SiC MOSFETs, diodes and gate drivers with various options. The company has over 20 years of experience in developing and manufacturing SiC devices and power solutions.
The information in this article is based on a press release statement from Microchip Technology. Investors seeking detailed analysis can access comprehensive research reports and financial metrics through InvestingPro, which offers in-depth coverage of over 1,400 US stocks, including Microchip Technology.
In other recent news, Microchip Technology has achieved significant milestones in the semiconductor industry. The company announced the MIL-STD-883 Class B and QML Class Q qualification for its radiation-tolerant RT PolarFire RTPF500ZT FPGA, marking important advancements for space-focused semiconductor products. This development highlights Microchip’s commitment to high-reliability applications and its use of nonvolatile technology that reduces power consumption. Additionally, Goldman Sachs initiated coverage on Microchip with a Buy rating, citing confidence in the company’s growth prospects as the microcontroller market begins to recover.
Steve Sanghi has been appointed as the permanent CEO of Microchip Technology, reinforcing leadership stability after serving in the role on an interim basis. Under his guidance, the company aims to continue its recovery plan and strengthen its market position. Furthermore, Microchip has partnered with Nippon Chemi-Con Corporation and NetVision Co. Ltd. to launch the first ASA-ML camera-development platform for the Japanese automotive market. This collaboration aims to accelerate the adoption of the ASA-ML standard, addressing industry demands for flexible and interoperable solutions. Meanwhile, Citi has reiterated Microchip as its top semiconductor pick, projecting significant earnings per share growth, further solidifying the company’s promising outlook.
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