Microchip Chief Executive Ganesh Moorthy said the company had recorded its ninth consecutive quarter of revenue growth and another record profit and net profit. He said the company remained cautiously optimistic about a soft landing and signed multi-year supply agreements with a growing number of customers.

Microchip said the number of days on hand in the fourth quarter is expected to be between 157 and 164 days, up from 152 days at the end of the third quarter. Ganesh Moorthy noted that previous problems due to the pandemic had led to higher-than-normal stock levels on both the channel side and the customer side.

Microchip forecast net sales of $2.191 billion to $2.256 billion for the fourth quarter of fiscal 2023, representing a sequential increase of 1 to 4 percent. Non-gaap earnings per share are expected to range from $1.61 to $1.63. Non-gaap gross margin is expected to be in the range of 68.1% to 68.3%. Capital expenditures for the fiscal fourth quarter are expected to be in the range of $154 million to $174 million. Capital expenditures for fiscal 2023 are estimated in the range of $525 million to $545 million.

According to Omdia statistics, the top five MCU manufacturers in the world in 2021 are NXP (17.3%), Renesas (16.8%), stmicroelectronics (15.4%), Infineon (13.9%) and Microchip Technology (12.6%).

The majority of Chinese MCU market share is also occupied by overseas giants. According to CSIA data, the top 5 MCU manufacturers in China in 2019 were stmicroelectronics (20.9%), NXP (20.2%), Microchip Technology (14.2%), Renesas Electronics (13.0%) and Infineon (6.2%), and CR5 was about 74%. Domestic manufacturers mainly competed in the consumer and low-end industrial control fields. Automobile, high-end industrial control market localization rate is low.