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CHANDLER, Ariz. - Microchip Technology Inc. (NASDAQ:MCHP), a semiconductor company with a market capitalization of $36.5 billion, announced Wednesday the release of two new Digital Signal Controller (DSC) families to address growing demands in embedded applications. According to InvestingPro data, the company currently trades above its Fair Value, despite showing strong financial health with a current ratio of 2.59.
The dsPIC33AK512MPS512 and dsPIC33AK512MC510 controllers are designed to improve energy efficiency in motor control, AI server power supplies, and energy storage systems.
The new controllers feature high-resolution Pulse Width Modulations (PWMs) at 78 picoseconds and low-latency 40 Msps ADCs, enabling precise control for Silicon Carbide and Gallium Nitride-based DC-DC converters.
"With specialized peripherals and the high-performance core in the dsPIC33AK512MPS family, developers can now achieve energy savings and shrink their power supply footprints," said Joe Thomsen, corporate vice president of Microchip’s digital signal controller business unit.
The controllers include up to 512 KB Flash memory and operate at 200 MHz core speed. They integrate security features such as crypto accelerators and a Flash security module to enable secure boot and firmware upgrades.
The devices comply with functional safety standards ISO 26262 and IEC 61508, making them suitable for automotive and industrial applications.
Norbert Weiss, managing director at Lauterbach GmbH, noted that the DSCs "provide high performance and reliability for complex automotive Electronic Control Units."
The controllers are supported by Microchip’s development tools including MPLAB XC-DSC Compiler and MPLAB ML Development Suite.
Pricing for the dsPIC33AK512MPS/MC DSCs starts at $1.50 each in volume production, according to the company’s press release statement. With analysts predicting profitability this year and the company maintaining dividend payments for 24 consecutive years, Microchip Technology continues to demonstrate resilience in the semiconductor market. For deeper insights into Microchip’s financial health and growth prospects, investors can access comprehensive analysis through InvestingPro’s detailed research reports, which cover over 1,400 US equities.
In other recent news, Microchip Technology has updated its financial guidance for the June quarter, signaling a positive shift in its business trajectory. This revision in outlook, announced after market hours, suggests improved operational performance and potential increased demand for its products. Analysts have responded with varied ratings: JPMorgan maintains an Overweight rating with a $70 price target, while Evercore ISI reaffirms an Outperform rating with a $69 target, citing optimism from recent investor meetings. UBS has raised its price target from $60 to $65, maintaining a Buy rating, highlighting expectations of revenue benefits from channel normalization and industrial recovery. Stifel also maintains a Buy rating with a $70 target, emphasizing confidence in the company’s valuation metrics. Meanwhile, Truist Securities holds a more conservative stance with a Hold rating and a $52 price target, noting that the current stock price reflects significant recovery. Analysts from these firms have shown confidence in Microchip Technology’s strategic positioning and future performance, with some projecting above-consensus earnings per share estimates for future years. These developments reflect a broad range of perspectives on Microchip Technology’s financial health and market potential.
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