Microchip’s Data Center Unit Eyes 65% Growth to $500M After $302.7M 2025
MCHP•Microchip’s Data Center Solutions Business Unit generated $302.7M in revenue in 2025 and expects 65% growth to $500M in 2026, with Q1 revenue up 62.9%. The company plans selective price increases across its product portfolio and will present at the Bank of America Global Technology Conference on June 2.
1. Data Center Business Unit Performance
Microchip’s Data Center Solutions Business Unit generated $302.7 million in 2025 and posted a 62.9% revenue increase in the March 2026 quarter. The unit comprises storage controllers, PCIe and CXL memory controllers, and Switchtec switch and retimer products, and is projected to grow by 65% to about $500 million in 2026.
2. Price Increase Initiative
Facing broad-based input cost pressures, Microchip will implement selective price increases across its product portfolio. Management expects these adjustments to have no impact on the fiscal quarter ending June 30, 2026 guidance.
3. Investor Conference Presentation
Microchip will present at the Bank of America Global Technology Conference on June 2, 2026 at 2:40 p.m. Pacific Time. CEO Steve Sanghi and CFO Eric Bjornholt will discuss the company’s strategy and growth prospects in a live webcast.
4. Board Appointment of Mitch Little
Mitch Little, former Senior Vice President of Worldwide Client Engagement, joined Microchip’s Board of Directors on June 1, 2026. Little brings extensive semiconductor industry experience and a track record in leadership and strategic growth initiatives at the company.
