Thursday, June 4, 2009

Microchip 10K

Fiscal 2009 revenue by reporting segment:
  • Microcontrollers $731.6M down 12.2%
  • Memory products $89.3M down 25.7%
  • Analog and interface products $82.3M down 0.3%
Wafer fabrication: " Fab 2 (Tempe, AZ) currently produces 8-inch wafers and supports manufacturing processes from 0.35 to 5.0 microns. During fiscal 2008 and the first half of fiscal 2009, Fab 2 operated at approximately 99% of its capacity. In response to lower demand in the second half of fiscal 2009, we reduced the production levels of Fab 2 to about 60% of capacity. We acquired Fab 4 (Gresham, OR ) in August 2002 and began production in October 2003. Fab 4 currently produces 8-inch wafers using predominantly 0.22 to 0.5 micron manufacturing processes and is capable of supporting technologies below 0.18 microns. Similar to Fab 2, Fab 4 was operating at about 100% of its active capacity during the first half of fiscal 2009. We reduced the production levels of Fab 4 in the second half of fiscal 2009 to about 60% of its active capacity. A significant amount of clean room capacity and equipment acquired with Fab 4 can be brought on line in the future to support incremental wafer fabrication capacity needs. We believe the combined capacity of Fab 2 and Fab 4 will provide sufficient capacity to allow us to respond to increases in future demand over the next several years with modest incremental capital expenditures."

Assembly and test: "We perform product assembly and testing at our facilities located near Bangkok, Thailand. As of March 31, 2009, approximately 77% of our assembly requirements were being performed in our Thailand facility. As of March 31, 2009, our Thailand facility was testing substantially all of our wafer production. We use third-party assembly and test contractors in several Asian countries for the balance of our assembly and test requirements. During fiscal 2009, we completed certain projects to increase capacity at our assembly and test operation in Thailand. Due to lower demand in the second half of fiscal 2009, we are currently operating at levels significantly below the total operating capacity of our Thailand facility."

Employees: As of March 31, 2009, we had 4,895 employees.