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CHANDLER, Arizona - Microchip Technology Incorporated (NASDAQ:MCHP) announced Wednesday that Steve Sanghi has been appointed as the company’s permanent Chief Executive Officer and President, after serving in these roles on an interim basis since November 2024. The announcement comes as the company’s stock has shown strong momentum, posting a nearly 28% gain over the past six months.
Sanghi, who will continue to serve as Chair of the Board of Directors, previously led Microchip as CEO for nearly 30 years before retiring from the position in 2021.
Matthew Chapman, Microchip’s lead independent director, said the board believes Sanghi is "the best person to lead the company on a long-term basis" following his implementation of a recovery plan aimed at restoring the company’s industry position.
"I have been a leader of Microchip for over 30 years and look forward to continuing to serve the company on a long-term basis," Sanghi said in the press release statement. He noted that while several elements of the recovery plan have been completed, others, such as achieving the company’s long-term operating model, will require "sustained efforts."
Microchip Technology, headquartered in Chandler, Arizona, provides embedded control solutions to approximately 109,000 customers across industrial, automotive, consumer, aerospace, defense, communications, and computing markets.
The announcement comes as the semiconductor company works to strengthen its market position amid industry challenges.
In other recent news, Microchip Technology Inc. has reported several developments that could impact investor decisions. The company has introduced the first ASA-ML camera-development platform for the Japanese automotive market in collaboration with Nippon Chemi-Con Corporation and NetVision Co. Ltd. This platform aims to accelerate the adoption of the ASA-ML standard in Advanced Driver-Assistance Systems. Additionally, Microchip has enhanced its TrustMANAGER platform with secure code signing and Firmware Over-the-Air update capabilities to comply with evolving cybersecurity regulations in the European Union.
On the financial front, Truist Securities has raised its price target for Microchip Technology from $52 to $64, maintaining a Hold rating. The increase reflects an optimistic outlook on the company’s recovering sales and margins. Meanwhile, Cantor Fitzgerald has reiterated a Neutral rating with a $70 price target, noting potential for gross margin expansion in upcoming quarters. Both firms acknowledge the company’s favorable position in the industrial sector, which could benefit its performance in the current market cycle. These recent developments highlight Microchip’s strategic initiatives and financial outlook as it navigates industry changes and regulatory requirements.
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