Microchip launches new gigabit ethernet switches for industrial networks

CHANDLER, Ariz. - Microchip Technology Inc. (NASDAQ:MCHP), a $35.5 billion market cap semiconductor company currently trading at $65.78, on Thursday introduced its new LAN9645xF and LAN9645xS Gigabit Ethernet Switches, designed to enhance industrial connectivity with multiple port configurations and advanced networking features. According to InvestingPro analysis, the company is currently trading above its Fair Value.

The new switches are available in 5-, 7-, and 9-port options with up to five integrated 10/100/1000BASE-T PHYs. They can operate in either stand-alone unmanaged configurations or in managed mode with full Linux Distributed Switch Architecture support.

The LAN9645xF variant supports Time-Sensitive Networking and Audio Video Bridging in managed mode, along with hardware-assisted redundancy features that comply with IEC 62439-3 standard for Parallel Redundancy Protocol and High-availability Seamless Redundancy. The LAN9645xS model offers standard Ethernet switching with some Precision Time Protocol support at a lower cost point.

"Our LAN9645xF/S devices help our customers lower their system costs while implementing advanced TSN and redundancy features by combining many features into a single solution," said Charlie Forni, corporate vice president of Microchip’s networking and communications business unit, according to the press release.

The company stated the new switches are targeted at industrial Ethernet applications, as well as aerospace and defense, data centers, and sustainability markets. They can be integrated with Microchip’s existing ecosystem of microcontrollers, memory, and timing solutions. With annual revenue of $4.24 billion and 13 analysts recently revising their earnings estimates upward, InvestingPro data suggests strong growth potential for the company. Subscribers can access 10+ additional ProTips and comprehensive financial metrics through the Pro Research Report.

For development purposes, Microchip is offering the LAN96459 EDS2 Daughter Card for use with compatible Curiosity Evaluation Boards, and a stand-alone LAN96459 Unmanaged Base Board for unmanaged demonstrations.

The LAN9645xF and LAN9645xS switches are currently available in limited sample quantities, according to the company’s announcement. With analyst price targets ranging from $60 to $90, investors can access detailed valuation metrics and expert analysis through InvestingPro’s comprehensive research tools and ad-free interface.

In other recent news, Microchip Technology has been the focus of several developments. Susquehanna lowered its price target for Microchip Technology to $85, maintaining a Positive rating amid macroeconomic uncertainty, while noting the company’s strong recovery from its first-quarter bottom. The firm observed a significant demand increase, with key performance indicators improving and sales rising sequentially for the first time in two years. Additionally, Wells Fargo initiated coverage on Microchip Technology with an Equal Weight rating and a $60.00 price target, highlighting the company’s potential for earnings per share recovery. Cantor Fitzgerald also reiterated its Neutral rating with a $70.00 price target, recognizing Microchip Technology as a preferred name in the Analog semiconductor space.

Furthermore, Microchip Technology’s subsidiary, Silicon Storage Technology, announced a strategic partnership with Deca Technologies. This collaboration aims to develop a non-volatile memory chiplet package, leveraging Deca’s fan-out and Adaptive Patterning technologies alongside SST’s SuperFlash technology. These recent developments come amid broader industry challenges, as semiconductor stocks, including Microchip Technology, faced pressure following China’s investigations into the U.S. chip sector.

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