Microchip projects 65% growth for data center unit to $500 million

Microchip Technology Inc. (NASDAQ: MCHP) reported its Data Center Solutions Business Unit generated $302.7 million in revenue during calendar year 2025 and expects approximately 65% growth in calendar year 2026 to reach about $500 million.

The Data Center Solutions Business Unit comprises three product families: storage controller/expanders/accelerators, PCIe and CXL memory controllers, and Switchtec PCIe switch and retimer businesses. In the March 2026 quarter, this unit's revenue increased 62.9% from the prior year quarter.

Steve Sanghi, Microchip's president and CEO, said the company has been receiving investor requests for additional revenue details related to its data center business. He noted that the broader datacenter and compute end market, which includes catalog microcontrollers, analog, power management, timing, memory and security products plus client PC revenue, represents approximately 18% of total company revenue.

The company announced plans to implement selective price increases across its product portfolio due to broad-based input cost pressures from suppliers and internal operations that cannot be fully absorbed. Microchip stated these price increases will not impact guidance or results for the fiscal quarter ending June 30, 2026.

Microchip is scheduled to present at the Bank of America Global Technology Conference on June 2, 2026, and the Evercore Global TMT Conference on June 3, 2026.

The Chandler, Arizona-based company provides semiconductor solutions across industrial, automotive, consumer, aerospace and defense, communications and computing markets.

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