CHANDLER, Ariz. - Microchip Technology (NASDAQ:MCHP) has launched the PIC64HX family of microprocessors (MPUs), designed to cater to the burgeoning edge computing market, specifically targeting the aerospace, defense, and industrial sectors. The company's latest offering is built to handle the demands of intelligent edge designs, with features that include multicore 64-bit RISC-V processing, advanced AI and machine learning capabilities, and integrated Time-Sensitive Networking (TSN) Ethernet connectivity.
The PIC64HX is notable for its defense-grade security, which includes post-quantum cryptographic algorithms recently standardized by NIST. This security is crucial for protecting against the potential threats posed by quantum computing. The MPU is also engineered for fault tolerance, resiliency, scalability, and power efficiency, essential characteristics for mission-critical applications.
Maher Fahmi, corporate vice president of Microchip’s communications business unit, highlighted the MPU's groundbreaking features and the benefits of integrating TSN Ethernet switching, which simplifies system designs and accelerates time to market while reducing system costs.
The MPU's eight 64-bit RISC-V CPU cores, equipped with vector extensions, are designed to enhance compute performance for systems that require high reliability and support various operational modes. The WorldGuard hardware architecture provides hardware-based isolation and partitioning, which is critical for safety in complex applications.
The OHPERA Consortium, comprising leading aerospace companies, has endorsed the RISC-V technology as a key component for the future of aviation. Christophe Vlacich, OHPERA technical leader, expressed satisfaction with the MPU's capabilities, which align with the consortium's goals for next-generation aircraft technology.
Microchip’s PIC64HX is supported by a comprehensive set of development tools, libraries, and firmware, compatible with various operating systems and hypervisors. To facilitate faster development cycles, Microchip is offering the Curiosity Ultra+ PIC64HX evaluation kit and is partnering with board computer partners like Aries Embedded.
Samples of the PIC64HX MPU will be made available to early access partners in 2025. For further details, interested parties are advised to contact a Microchip sales representative.
This announcement is based on a press release statement from Microchip Technology Inc . and provides a factual account of the company's new product introduction without endorsing the claims.
In other recent news, Microchip Technology reported a decrease in net sales for the first quarter of fiscal year 2025, totaling $1.241 billion, a 6.4% drop from the previous quarter. However, non-GAAP net income remained robust at $289.9 million, with earnings per diluted share of $0.53. Analyst firms have reassessed their positions on Microchip Technology's stock. Truist Securities downgraded the stock from Buy to Hold, adjusting the price target to $80 from the previous $89. Meanwhile, Mizuho Securities maintains an Outperform rating, despite a reduction in its price target and lowered revenue forecasts.
In other developments, Microchip Technology expanded its Wi-Fi product line with 20 new products and launched its 101765 family of Voltage-Controlled SAW Oscillators (VCSOs) designed for the aerospace and defense markets. Furthermore, the company demonstrated a significant advancement in data center interconnectivity in collaboration with Acacia Communications (NASDAQ:ACIA). These are among the recent developments that have been shaping the trajectory of Microchip Technology.
InvestingPro Insights
Microchip Technology's launch of the PIC64HX family of microprocessors aligns with the company's position as a prominent player in the Semiconductors & Semiconductor Equipment industry, as highlighted by InvestingPro Tips. This move into edge computing for aerospace, defense, and industrial sectors could be crucial for the company's future growth, especially considering that analysts anticipate a sales decline in the current year.
Despite the expected sales decline, Microchip Technology has shown resilience in its financial management. According to InvestingPro Data, the company's revenue for the last twelve months as of Q1 2025 stood at $6.59 billion, with a robust gross profit margin of 63.37%. This strong profitability is reflected in the company's ability to maintain dividend payments for 23 consecutive years, with a current dividend yield of 2.35%.
InvestingPro Tips also reveal that Microchip has raised its dividend for 12 consecutive years, demonstrating a commitment to shareholder returns even as it invests in new technologies like the PIC64HX. This could be particularly appealing to investors looking for companies with a track record of consistent dividend growth.
The company's focus on advanced technologies and mission-critical applications is supported by its solid financial position. InvestingPro Data shows that Microchip's liquid assets exceed short-term obligations, providing financial flexibility to invest in R&D and new product lines like the PIC64HX.
For investors seeking more comprehensive analysis, InvestingPro offers additional tips and insights beyond those mentioned here. In fact, there are 8 more InvestingPro Tips available for Microchip Technology, which could provide valuable context for understanding the company's market position and future prospects.
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