Microchip Technology Inc at Citi TMT Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Christopher Danely - Citi Infrastructure Investments LLC - Analyst : And let's jump right into the 9-point plan. Maybe just run through it again and talk about where we are on those 9 points, how things are going, and then we'll go ahead and run from there.

Question: Christopher Danely - Citi Infrastructure Investments LLC - Analyst : No plans for the government to take a stake in Microchip, good. I like that. So let's just sort of jump into how the year has gone. I mean your sales are largely growing faster than your peers, after this big bed ugly downturn. Why do you think that is? Do you think that some of it is just sort of the law of the bounce in semis because your sales declined a little faster than peers? Or is there something else going on out there that's enabling you guys to put up these good growth numbers so far this year?

Question: Christopher Danely - Citi Infrastructure Investments LLC - Analyst : Great. All right. I have a series of questions on all of those comments you just said. I did have some of your larger shareholders demand that I ask a couple of different questions. Number one, on the Aerospace and Defense. With all of this sort of NATO spending going on, how do you feel like your exposure is to Europe on the Aerospace and Defense and the ability to take advantage of that?

Question: Christopher Danely - Citi Infrastructure Investments LLC - Analyst : Great. And then just to run through the numbers. So Aerospace and Defense was around 18% of business last year. I think Industrial is 41%? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 04, 2025 / 11:30AM, MCHP.OQ - Microchip Technology Inc at Citi TMT Conference

Question: Christopher Danely - Citi Infrastructure Investments LLC - Analyst : 30% -- sorry.

Question: Christopher Danely - Citi Infrastructure Investments LLC - Analyst : Got it. So Industrial 30% and then Aerospace and Defense is another 18%.

Question: Christopher Danely - Citi Infrastructure Investments LLC - Analyst : Great. One other question was given the issues that happened with PSP, whenever the next upturn happens, contrary to popular belief, I do believe there's going to be another upturn in analog and semis. Is it fair to say probably not going to be another PSP program in the next upturn?

Question: Christopher Danely - Citi Infrastructure Investments LLC - Analyst : Great. And then you've been on point as to when this recovery first started about saying, hey, our bookings this month were better than last month and this quarter. It was better than last quarter, and this week is the best in 36 months or something like that. Can you give us sort of a rundown of those statistics? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 04, 2025 / 11:30AM, MCHP.OQ - Microchip Technology Inc at Citi TMT Conference

Question: Christopher Danely - Citi Infrastructure Investments LLC - Analyst : And then given this strength in bookings, I know you came out and said on the previous conference call that you expect above seasonal growth in the December and the March quarters. Maybe give us some of the reasons why you have confidence in that? Does it tie back to your comment earlier where you said every month, we've got, I think you said thousands of customers starting to order again? Are those tied in?

Question: Christopher Danely - Citi Infrastructure Investments LLC - Analyst : Great. Another sort of area you've been a leader in is the lead times. I think you made some comments on the last conference call that you've seen some, I guess, times of certain products start to extend. I don't know if anybody else is seeing that yet, although we'll see what happens in October. Can you maybe talk about the circumstances that surround that? And do you expect be able to get that under -- to get that under control? Or will we see more lead times extend as business continues to improve?

Question: Christopher Danely - Citi Infrastructure Investments LLC - Analyst : I don't think it's just you, Steve, I think exactly the same thing.

Question: Christopher Danely - Citi Infrastructure Investments LLC - Analyst : All those (inaudible) customers. I had two questions for the stage of the Southwest. Yesterday, we had a whole bunch of analog companies talking about two areas where we got differing opinions, and I just wanted your take. First was on the Automotive end market. As you said, it's like mid-high teens percent of your revenue. Some companies are saying it's good. Some companies are saying it's not good. What's the Microchip take on the state of the Automotive end market?

Question: Christopher Danely - Citi Infrastructure Investments LLC - Analyst : Okay. And then another one was on demand in China. So there's this constant drumbeat or fear of this China for China strategy, apparently, some people think this is brand new. I've been seeing it going on for about 25 years, but some companies are saying that their China business is good. Some companies are saying their China business is hurting. Maybe talk a little bit about your China demand trends and then the China for China impact or not impact on Microchip?

Question: Christopher Danely - Citi Infrastructure Investments LLC - Analyst : Yes. I think on the conference call, you guys -- did you say you expected the China business to be up this quarter?

Question: Christopher Danely - Citi Infrastructure Investments LLC - Analyst : All right. Thanks, Steve. That's all we have time for. Thanks, everyone. Appreciate it.