Swot Analysis Of Microchip

Microchip Technology, which will be referred to as Microchip, is a U.S. public competitor and benchmark of NVE Corporation. Microchip was first incorporated in 1989 in Delaware. Headquarters is located in Chandler, Arizona. Microchip recently purchased former competitors Atmel, Micrel, and SuperTex. The deals consolidate Microchip’s standing as one of the biggest makers of embedded chips (Bloomberg). Sales have risen, and the company continues to grow with the purchase of these competitors.
Microchip develops, manufacturers, and sells “semiconductor products [for] customers for a wide variety of embedded control applications” (Microchip 10-K, 3). Embedded control systems include microcontrollers, development tools, analog products, memory products, and technology licensing (Microchip 10-K, 4). From Bloomberg research, “Microchip Technology’s stated goal is to provide specialized semiconductor products for a wide variety of embedded control applications, such as consumer, automotive, industrial, office, automation, and telecommunications.”
Industry
By being a company engaged with embedded control systems, there are requirements to:
• differentiate products
• reduce number of components in the system
• add product functionality

With this competitive industry, there is a risk for cloning, manipulating, and changing engineering, in order to produce similar products. This risk can either be seen with domestic or foreign companies. Microchip suspects that foreign countries, such as Taiwan and China, have copied their product lines (Microchip 10-K, 9). Because of this, competitive companies have to view their products performance, reliability, functionality, and development. Other factors include price, time, and ease of use (Microchip 10-K, 9). Microchip provides a competitive strategy to separate them from their competitors. This involves responding to customers’ orders with short