In the fast-evolving semiconductor industry, two companies stand out for their innovative approaches: Microchip Technology Incorporated (MCHP) and Lattice Semiconductor Corporation (LSCC). Both firms operate in the same sector but focus on different segments and customer needs. Microchip specializes in a broad range of embedded control solutions, while Lattice emphasizes field-programmable gate arrays and application-specific products. As we delve into their financials, growth strategies, and market positions, I will help you determine which company might be the better investment choice for your portfolio.
Table of contents
Company Overview
Microchip Technology Incorporated Overview
Microchip Technology Incorporated (MCHP) is a leading provider of smart, connected, and secure embedded control solutions. Founded in 1989 and headquartered in Chandler, Arizona, the company operates in the semiconductor industry, offering a diverse range of microcontrollers, microprocessors, and memory products. Microchip serves various sectors, including automotive, industrial, and communications, with a strong emphasis on development tools and engineering services. With a market cap of approximately $28.87B and a workforce of over 22K employees, Microchip continues to innovate in the embedded systems space, catering to a global clientele.
Lattice Semiconductor Corporation Overview
Lattice Semiconductor Corporation (LSCC) specializes in the development of semiconductor products, particularly field programmable gate arrays (FPGAs). Established in 1983 and based in Hillsboro, Oregon, Lattice serves markets across Asia, Europe, and the Americas. The company focuses on providing customizable solutions for communications, computing, and industrial applications. Lattice’s market cap is around $9.60B, and it employs approximately 1,110 people. The company is known for its IP licensing strategies, allowing it to monetize its technology while catering to original equipment manufacturers.
Key similarities and differences
Both Microchip and Lattice operate within the semiconductor industry, focusing on programmable solutions. However, Microchip’s extensive product range includes microcontrollers and memory solutions, while Lattice primarily centers on FPGAs. Additionally, Microchip addresses a wider array of market segments, whereas Lattice emphasizes niche applications in video connectivity and specific industrial sectors.
Income Statement Comparison
The following table presents a comparison of the most recent income statements for Microchip Technology Incorporated (MCHP) and Lattice Semiconductor Corporation (LSCC), highlighting key financial metrics.
| Metric | MCHP | LSCC |
|---|---|---|
| Market Cap | 28.87B | 9.60B |
| Revenue | 4.40B | 0.51B |
| EBITDA | 1.04B | 0.11B |
| EBIT | 0.29B | 0.06B |
| Net Income | -0.0005B | 0.06B |
| EPS | -0.005 | 0.44 |
| Fiscal Year | 2025 | 2024 |
Interpretation of Income Statement
In the latest fiscal year, MCHP experienced a significant decline in revenue to 4.40B, down from previous years, leading to a net loss of 500K. Conversely, LSCC showed positive growth, with revenue of 510M and a net income of 61M, reflecting a healthy operational stability. MCHP’s EBITDA margin decreased, indicating increasing costs or inefficiencies, while LSCC maintained a robust EBITDA margin, suggesting effective cost management. Overall, MCHP’s performance reflects challenges in its operational environment, contrasting with LSCC’s upward trend in profitability and revenue growth.
Financial Ratios Comparison
The following table presents a comparative analysis of key financial metrics and ratios for Microchip Technology Incorporated (MCHP) and Lattice Semiconductor Corporation (LSCC) as of the most recent fiscal year.
| Metric | MCHP | LSCC |
|---|---|---|
| ROE | -0.07% | 0.09 |
| ROIC | -0.03% | 0.08 |
| P/E | -52021.39 | 36.67 |
| P/B | 3.68 | 13.73 |
| Current Ratio | 2.59 | 3.66 |
| Quick Ratio | 1.47 | 2.62 |
| D/E | 0.80 | 0.02 |
| Debt-to-Assets | 0.37 | 0.02 |
| Interest Coverage | 1.18 | 129.54 |
| Asset Turnover | 0.29 | 0.60 |
| Fixed Asset Turnover | 3.72 | 7.62 |
| Payout Ratio | -1951.4 | 0 |
| Dividend Yield | 3.75% | 0% |
Interpretation of Financial Ratios
The financial ratios indicate a stark contrast between MCHP and LSCC. MCHP shows negative profitability and a very high P/E ratio, suggesting it is currently unprofitable, which is a significant concern for investors. In contrast, LSCC exhibits strong profitability metrics, with solid returns and a manageable debt level. The high interest coverage ratio for LSCC reflects its ability to meet interest obligations comfortably, indicating a more stable financial position.
Dividend and Shareholder Returns
Microchip Technology (MCHP) pays a dividend with a current yield of 3.75% and a payout ratio of 47.8%, indicating a sustainable approach to shareholder returns. However, its negative net income raises caution regarding future distributions. Lattice Semiconductor (LSCC), on the other hand, does not pay dividends, reflecting a reinvestment strategy focused on growth in a high-demand market. Despite this, LSCC engages in share buybacks, potentially enhancing long-term shareholder value. Overall, MCHP’s dividends and LSCC’s buybacks both aim to support value creation, but MCHP’s financial health warrants closer scrutiny.
Strategic Positioning
Microchip Technology (MCHP) holds a significant market share in the semiconductor industry, especially in microcontrollers and embedded solutions, with a market cap of $28.9B. In contrast, Lattice Semiconductor (LSCC), valued at $9.6B, focuses on field-programmable gate arrays and video connectivity products. Both companies face competitive pressure from larger firms and emerging technologies, necessitating continuous innovation to mitigate risks associated with technological disruption. Their strategic positioning will be crucial as they navigate these challenges and capitalize on growth opportunities.
Stock Comparison
In this section, I will analyze the stock price movements and trading dynamics for Microchip Technology Incorporated (MCHP) and Lattice Semiconductor Corporation (LSCC) over the past year, highlighting key price fluctuations and market trends.
Trend Analysis
Microchip Technology Incorporated (MCHP)
Over the past year, MCHP has experienced a significant decline, with a percentage change of -36.21%. This indicates a bearish trend characterized by deceleration, as the most recent analysis shows a further drop of -17.19% since September 14, 2025. The stock has seen notable price fluctuations, reaching a high of 98.23 and a low of 36.22. The standard deviation of 14.87 suggests considerable volatility in its price movements.
Lattice Semiconductor Corporation (LSCC)
In contrast, LSCC has demonstrated a positive performance with an overall percentage change of 8.7%, marking a bullish trend despite a recent deceleration in momentum with a 9.0% increase since September 14, 2025. The stock’s price has varied between a high of 80.45 and a low of 39.03, with a standard deviation of 9.95 indicating moderate volatility.
In summary, MCHP’s bearish trend and increasing selling pressure contrast sharply with LSCC’s bullish trajectory and stronger buyer dominance in recent trading activities.
Analyst Opinions
Recent analyst recommendations for Microchip Technology Incorporated (MCHP) indicate a cautious stance, with a rating of C- from various analysts, highlighting concerns over its financial metrics. Conversely, Lattice Semiconductor Corporation (LSCC) has received a more favorable rating of B-, suggesting a positive outlook supported by solid return on assets and equity performance. Based on this analysis, the consensus for MCHP leans towards a hold, while LSCC is viewed more favorably, reflecting a buy recommendation for 2025.
Stock Grades
As we analyze the latest stock ratings, we can see that both Microchip Technology Incorporated (MCHP) and Lattice Semiconductor Corporation (LSCC) have received consistent evaluations from reputable grading companies.
Microchip Technology Incorporated Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Truist Securities | maintain | Hold | 2025-11-07 |
| Susquehanna | maintain | Positive | 2025-11-07 |
| Citigroup | maintain | Buy | 2025-11-07 |
| Stifel | maintain | Buy | 2025-11-07 |
| Wells Fargo | maintain | Equal Weight | 2025-11-07 |
| Cantor Fitzgerald | maintain | Neutral | 2025-11-07 |
| Needham | maintain | Buy | 2025-11-07 |
| Morgan Stanley | maintain | Equal Weight | 2025-11-04 |
| Needham | maintain | Buy | 2025-08-08 |
| Piper Sandler | maintain | Overweight | 2025-08-08 |
Lattice Semiconductor Corporation Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Rosenblatt | maintain | Buy | 2025-11-04 |
| Needham | maintain | Buy | 2025-11-04 |
| Benchmark | maintain | Buy | 2025-11-04 |
| Stifel | maintain | Buy | 2025-11-04 |
| Baird | maintain | Outperform | 2025-11-04 |
| Susquehanna | maintain | Positive | 2025-10-22 |
| Keybanc | maintain | Overweight | 2025-09-30 |
| Needham | maintain | Buy | 2025-09-22 |
| Benchmark | maintain | Buy | 2025-09-11 |
| Benchmark | maintain | Buy | 2025-08-05 |
Overall, both MCHP and LSCC maintain strong ratings, with a significant number of “Buy” recommendations. This suggests a positive sentiment among analysts, indicating potential growth opportunities in these stocks.
Target Prices
Analysts have provided reliable target price data for both Microchip Technology Incorporated (MCHP) and Lattice Semiconductor Corporation (LSCC).
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Microchip Technology | 83 | 60 | 71.33 |
| Lattice Semiconductor | 85 | 65 | 79 |
Overall, analysts expect MCHP to reach a consensus target price of 71.33, suggesting a potential upside from its current price of 53.58. For LSCC, the consensus target of 79 indicates a favorable outlook compared to its current price of 70.21.
Strengths and Weaknesses
The following table outlines the strengths and weaknesses of Microchip Technology Incorporated (MCHP) and Lattice Semiconductor Corporation (LSCC), providing a comparative overview to assist in your investment decisions.
| Criterion | Microchip Technology (MCHP) | Lattice Semiconductor (LSCC) |
|---|---|---|
| Diversification | High (varied product range) | Moderate (focused on FPGAs) |
| Profitability | Moderate (profit margins improving) | High (strong net profit margin) |
| Innovation | Strong (consistent R&D investment) | Moderate (growing innovation) |
| Global presence | Extensive (operates in multiple regions) | Growing (increasing international sales) |
| Market Share | Significant (leading in several segments) | Niche (specific market focus) |
| Debt level | Moderate (debt-to-equity ratio ~0.8) | Low (debt-to-equity ratio ~0.02) |
Key takeaways indicate that MCHP holds a strong position in diversification and innovation, while LSCC excels in profitability and debt management. Investors should weigh these factors based on their risk tolerance and investment strategy.
Risk Analysis
In the table below, I analyze the key risks associated with Microchip Technology (MCHP) and Lattice Semiconductor (LSCC).
| Metric | Microchip Technology (MCHP) | Lattice Semiconductor (LSCC) |
|---|---|---|
| Market Risk | High | Moderate |
| Regulatory Risk | Moderate | Moderate |
| Operational Risk | High | Low |
| Environmental Risk | Low | Low |
| Geopolitical Risk | Moderate | Low |
Both companies face significant market and operational risks. MCHP’s operational challenges stem from fluctuating demand in the semiconductor sector, while LSCC’s exposure to market volatility is moderate. Recent supply chain disruptions have heightened these risks across the industry.
Which one to choose?
In evaluating Microchip Technology (MCHP) and Lattice Semiconductor (LSCC), I find that LSCC appears to be the more favorable option for investors. LSCC boasts a higher gross profit margin of approximately 66.8% compared to MCHP’s 56.1%. Furthermore, LSCC has shown a bullish stock trend with an 8.7% price increase over the past year, while MCHP has experienced a significant decline of 36.2%. Analyst ratings also reflect this disparity, with LSCC rated B- versus MCHP’s C-.
For growth-focused investors, Lattice Semiconductor is likely the better choice due to its stronger financial performance and positive market sentiment. However, those who prioritize stability might still consider Microchip Technology, despite its current challenges.
Risks include market volatility, competition, and operational efficiency in the semiconductor industry.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Go further
I encourage you to read the complete analyses of Microchip Technology Incorporated and Lattice Semiconductor Corporation to enhance your investment decisions:
