Microchip introduces quantum-resistant controllers

CHANDLER, Ariz. - In response to the National Security Agency’s (NSA) call for quantum-resistant cryptographic standards, Microchip Technology (NASDAQ:MCHP), a $32.6 billion market cap semiconductor company, has launched the MEC175xB family of embedded controllers. These new devices are designed to help computing markets transition to post-quantum cryptography, aligning with the NSA’s Commercial National Security Algorithm Suite 2.0 (CNSA 2.0) guidelines for enhanced security measures. With 15 analysts recently revising their earnings estimates upward, the company’s innovative approach has caught Wall Street’s attention. (InvestingPro data shows more insights about the company’s growth potential.)

The MEC175xB controllers are equipped with National Institute of Standards and Technology (NIST) approved post-quantum cryptographic algorithms. This includes Module-Lattice-Based Digital Signature Algorithms (ML-DSA), Merkle stateful hash-based Leighton-Micali Signature (LMS) verification, and Module-Lattice-Based Key-Encapsulation Mechanism (ML-KEM). These algorithms are implemented in immutable hardware to prevent attack paths that could be exploited through software implementations.

Nuri Dagdeviren, corporate vice president of Microchip’s security products business unit, emphasized the importance of preparing for potential quantum computing threats to cryptography. The MEC175xB controllers are said to provide a modular approach for developers to upgrade their security without affecting existing functionalities.

The controllers feature an Arm Cortex-M4F processor, 480 KB of SRAM, and various connectivity options, including I3C host and client interfaces and an optional USB 2.0 Full-Speed interface. They also support secure boot and secure firmware updates, with configurable attestation capabilities to ensure system integrity and authenticity.

Microchip’s early adopter program currently offers the MEC175xB controllers, with development tools such as MPLAB X Integrated Development Environment (IDE) and the MEC1753-240 MECC (EV48H83A) development board available to support the integration of these controllers into various applications.

Microchip Technology, headquartered in Chandler, Arizona, serves over 100,000 customers across multiple markets, providing embedded control and processing solutions. The company’s new quantum-resistant controllers are part of its commitment to delivering secure and connected technology that meets the evolving needs of the cybersecurity landscape.

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

In other recent news, Microchip Technology reported fourth-quarter fiscal 2025 earnings that surpassed Wall Street expectations, with an EPS of $0.11 compared to the forecasted $0.10. The company also reported revenue of $970.5 million, slightly above the anticipated $962.76 million. Looking forward, Microchip’s revenue guidance for the first quarter of fiscal 2026 is set at $1.045 billion, marking a 7.7% sequential increase and exceeding consensus estimates. Analysts from Stifel have responded positively to these developments, raising their price target for Microchip shares to $70, while maintaining a Buy rating. Similarly, Piper Sandler has reaffirmed an Overweight rating with a $65 price target, citing confidence in the company’s recovery plan and operational improvements.

Conversely, Truist Securities, despite acknowledging the positive earnings report, has expressed caution due to valuation concerns, raising their price target to $52 but maintaining a Hold rating. TD Cowen also raised its price target to $55, while maintaining a Hold rating, citing a cautious optimism due to uncertain macroeconomic conditions. Microchip’s management has provided updates on its Nine Point Recovery Plan, highlighting progress in reducing inventory levels and focusing on product-driven innovation. These recent developments reflect a strategic emphasis on operational efficiency and growth in high-potential markets such as AI and defense, which are crucial for the company’s future trajectory.

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