Microchip Reports $1.62 Billion in Q2 Fiscal 2027 Sales Amid Supply Constraints and Data Center Growth
Microchip (MCHP) reported second-quarter fiscal 2027 net sales of $1.62 billion, representing a 9.2% sequential increase. Despite steady demand across the industrial, automotive, and defense sectors, the company is facing significant headwinds due to external manufacturing bottlenecks at foundries and outsourced semiconductor assembly and test (OSAT) providers. These capacity constraints have extended product lead times from a historical four to eight weeks up to as many as 32 weeks. On a positive note, Microchip is seeing rapid acceleration in its data center business, driven by high-speed connectivity products like PCIe switches and retimers. The company also recently completed the acquisition of Hailo, which provides advanced neural processing unit (NPU) technology, effectively fast-tracking their edge AI roadmap by five years. Management remains optimistic about the upcoming March quarter backlog.
Tickers: $MCHP
Topics: data center growth earnings report semiconductor industry supply chain constraints