Microchip Technology Incorporat MCHP

Competitive advantage analysis · technology

Corporate Default
Overall moat score
50/100
Developing

Ranked against 65 peers in Semiconductors

About Microchip Technology Incorporat

Microchip Technology Incorporated develops, manufactures, and sells smart, connected, and secure embedded control solutions in the Americas, Europe, and Asia. It operates through two segments, Semiconductor Products and Technology Licensing. The company offers general purpose 8-bit, 16-bit, 32-bit, and 64-bit mixed-signal microcontrollers; 32-bit and 64-bit embedded mixed-signal microprocessors; and specialized mixed-signal microcontrollers for automotive, industrial, computing, communications, lighting, power supplies, … Full MCHP analysis →

Key strengths

  • Operating Expense Control OpEx growth is controlled (score 0.61), demonstrating operating leverage.

Key risks

  • Elevated Debt Risk Debt serviceability is weak (score 0.29), raising refinancing risk.
  • Liquidity Concerns Liquidity is concerning (score 0.28), raising questions about short-term obligations.

The dashed ring is the peer median. Defense scores are percentile ranks against peers, so 50 is roughly the typical company in this group.

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Pricing Power

Moderate
57
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Signals, strengths and risks for Pricing Power

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Signals, strengths and risks for Cost Advantage

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Signals, strengths and risks for Customer Stickiness

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Signals, strengths and risks for Capital Efficiency

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Signals, strengths and risks for Resilience

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Signals, strengths and risks for Scale & Market Position

Where MCHP ranks in Semiconductors

Microchip Technology Incorporat ranks #31 of 66 scored companies in Semiconductors by moat score — the top 47%. The widest moat in the group is NVE Corporation (NVEC) at 86/100.

# Company Moat score Rating
27 Lattice Semiconductor Corporati LSCC 52/100 Moderate
28 Power Integrations, Inc. POWI 51/100 Moderate
29 Arteris, Inc. AIP 50/100 Developing
30 CEVA, Inc. CEVA 50/100 Developing
31 Microchip Technology Incorporat MCHP 50/100 Developing
32 ON Semiconductor Corporation ON 49/100 Developing
33 Diodes Incorporated DIOD 49/100 Developing
34 Himax Technologies, Inc. HIMX 45/100 Developing
35 STMicroelectronics N.V. STM 44/100 Developing

See every General Corporate company ranked by moat score →

How MCHP scores on the Corporate Default defenses

Pricing Power

Score 57 · 20% of the moat score

Pricing power is the ability to raise prices without losing volume.

Cost Advantage

Score 60 · 15% of the moat score

A cost advantage means delivering the same product for structurally less — better purchasing, denser distribution, a more automated process.

Customer Stickiness

Score 51 · 15% of the moat score

Stickiness is what makes revenue repeat without being re-won every year.

Capital Efficiency

Score 44 · 18% of the moat score

Capital efficiency asks what the company earns on the money tied up in the business.

Resilience

Score 35 · 17% of the moat score

Resilience is the capacity to get through a bad year on its own terms — enough liquidity, enough interest cover, and enough cash generation to avoid a rescue financing or a forced sale.

Scale & Market Position

Score 51 · 15% of the moat score

Scale matters only when it converts into economics.

How each Corporate Default defense is measured, in full →

Understanding MCHP's moat

What is Microchip Technology Incorporat's moat score?

Microchip Technology Incorporat (MCHP) scores 50 out of 100 on the StatsAlpha Moat Map, which rates its competitive advantage as developing. It ranks #31 of 66 scored companies in Semiconductors, the top 47%. The score is a weighted composite of 6 competitive defenses, each measured against industry peers of 65 companies in Semiconductors. Its strongest defense is Cost Advantage (60/100) and its weakest is Resilience (35/100).

How does Microchip Technology Incorporat compare with other Semiconductors companies?

Microchip Technology Incorporat ranks #31 of 66 scored companies in Semiconductors by moat score. The widest moat in Semiconductors is NVE Corporation (NVEC) at 86/100. The companies ranked closest are CEVA, Inc. (CEVA) at 50 just above it and ON Semiconductor Corporation (ON) at 49 just below it.

How is the moat score calculated?

Each company is scored with an industry-specific template — Corporate Default in this case, chosen because the defenses that matter to a bank are not the ones that matter to a software company. Every defense combines several financial signals, and each signal is measured as a percentile against a peer group of 65 companies in Semiconductors. The defenses are then weighted to produce the overall score out of 100.

Why is Microchip Technology Incorporat scored with the Corporate Default template?

Most public companies sell a product or a service at a margin, so the moat question is whether that margin survives contact with competitors. The Corporate template scores the six defenses that show up in a general operating company's financial signature: whether it can hold price, produce more cheaply than rivals, keep its customers, earn a return above its cost of capital, withstand a downturn, and turn size into economics.

Which competitive defenses are measured for Microchip Technology Incorporat?

The Corporate Default template measures 6 defenses, and MCHP scores: Pricing Power (57), Cost Advantage (60), Customer Stickiness (51), Capital Efficiency (44), Resilience (35), Scale & Market Position (51). Each is scored independently as a percentile against peers, so a company can be strong on one and weak on another — the overall score reflects how those defenses are weighted for this industry.

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