Microchip Technology Inc
F:MCP
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Operating Margin
Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.
Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.
Peer Comparison
| Country | Company | Market Cap |
Operating Margin |
||
|---|---|---|---|---|---|
| US |
|
Microchip Technology Inc
NASDAQ:MCHP
|
35.5B USD |
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|
| US |
|
Texas Instruments Inc
NASDAQ:TXN
|
176.7B USD |
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|
| NL |
|
NXP Semiconductors NV
NASDAQ:NXPI
|
49.2B USD |
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|
|
| US |
|
NVIDIA Corp
NASDAQ:NVDA
|
4.3T USD |
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| TW |
|
Taiwan Semiconductor Manufacturing Co Ltd
TWSE:2330
|
46.9T TWD |
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| US |
|
Broadcom Inc
NASDAQ:AVGO
|
1.5T USD |
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| US |
|
Micron Technology Inc
NASDAQ:MU
|
413.1B USD |
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| KR |
|
SK Hynix Inc
KRX:000660
|
582.4T KRW |
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| US |
|
Advanced Micro Devices Inc
NASDAQ:AMD
|
354.5B USD |
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| US |
|
Intel Corp
NASDAQ:INTC
|
251.6B USD |
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| UK |
|
Arm Holdings PLC
NASDAQ:ARM
|
158.4B USD |
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Market Distribution
| Min | -4 087 900% |
| 30th Percentile | -5.1% |
| Median | 6% |
| 70th Percentile | 14.8% |
| Max | 1 032 600% |
Other Profitability Ratios
Microchip Technology Inc
Glance View
Microchip Technology Inc. is a compelling story woven into the fabric of the semiconductor industry, tracing its roots back to its founding in 1989 when it was carved out of General Instrument. Based in Chandler, Arizona, the company embarked on an ambitious journey to innovate in the embedded control solutions space. At its core, Microchip specializes in the design, development, and production of microcontrollers, alongside a diverse portfolio that includes analog, mixed-signal, and flash-IP solutions. These products serve as the digital 'brains' controlling a multitude of electronic devices and systems across various industries such as automotive, industrial, consumer, telecommunications, and computing. By focusing on the integration of complementary product lines, Microchip has built a robust ecosystem that aids customers in simplifying designs and reducing overall system costs. Revenue streams for Microchip Technology Inc. are intricately linked to its expertise in providing high-performance, cost-effective solutions that address the evolving needs of its clients. Through its direct sales force and an extensive network of distributors, Microchip delivers a comprehensive suite of products and services that encompass both hardware and software components. The company also benefits from offering a range of scalable solutions, enabling seamless upgrades and longer product lifecycle support for customers. This strategic approach not only fosters strong partnerships with end-users and Original Equipment Manufacturers (OEMs) but also ensures recurring revenue through design wins and repeat orders in high-growth segments. Through a combination of strategic acquisitions and organic innovation, Microchip consistently strengthens its market position, setting it apart as a key player in the semiconductor landscape.
See Also
Operating Margin is calculated by dividing the Operating Income by the Revenue.
The current Operating Margin for Microchip Technology Inc is 6.3%, which is below its 3-year median of 22.5%.
Over the last 3 years, Microchip Technology Inc’s Operating Margin has decreased from 35% to 6.3%. During this period, it reached a low of 3.7% on Sep 30, 2025 and a high of 38.7% on Sep 30, 2023.