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Microchip Technology MCHP launched updates to its PolarFire FPGA and SoC solution stacks to support medical imaging and smart robotics applications.
These advanced stacks include firmware, IP cores and software design kits that support AI-powered computer vision, real-time robotics tasks and industrial networking protocols. They also offer extensive customization options and compatibility with popular development tools, making them ideal for complex applications.
These solutions aim to accelerate product development and simplify processes for industries adopting IoT, industrial automation and smart robotics. The stack builds on Microchip's expertise in smart embedded vision and industrial edge communications.
The solution stacks offer AI-powered 4K60 computer vision, real-time robotics support with ROS-2 cores and robust networking protocols like OPC/UA. With safety certifications and advanced cybersecurity, PolarFire FPGAs provide high performance in compact, energy-efficient designs for AI, medical imaging and robotics.
Microchip Technology Incorporated Price and Consensus
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Highlighting its versatility, Microchip’s PolarFire FPGA Ethernet Sensor Bridge integrates with NVIDIA’s NVDA Holoscan platform, enabling real-time sensor data processing for AI/ML applications in the medical, industrial and automotive markets.
MCHP Stock Lags Sector in a Year
Microchip shares have slipped 33.8% in the trailing 12 months, significantly underperforming the broader Zacks Computer & Technology Sector’s appreciation of 37.2% and the Zacks Semiconductor - Analog and Mixed industry’s decline of 5.1%.
Microchip recently revised its revenue guidance for the December-end quarter of 2024 to $1.025 billion. The figure is closer to the lower end of its original guidance. This adjustment comes as MCHP experiences slower-than-expected turn orders.
The company announced plans to close its Fab 2 manufacturing facility in Tempe, AZ, by the September-end quarter of 2025. This move is part of its efforts to optimize Microchip's manufacturing footprint and reduce costs. This shutdown is expected to save $90 million annually.
Microchip plans to transfer production from its Fab 2 facility to its Oregon and Colorado plants, which have adequate expansion capacity. This restructuring aims to address high inventory levels, with moderation expected by March 2025.
The company estimates near-term restructuring costs between $3 million and $8 million related to its plan to shut down the Fab 2 facility. MCHP foresees the potential for restructuring and shutdown expenses, which could total up to an additional $15 million.