Microchip's acquisition of Atmel was full of twists and turns, and it was not until Dialog announced the acquisition agreement that a termination fee was paid to finally complete the deal, which somewhat makes it seem that Microchip has hesitated throughout the acquisition process. However, Microchip COO and President Ganesh Moorthy recently denied such speculation in an exclusive interview with this publication.
Are you sure that such speculation from the outside world is inaccurate?
100% certainty! Regarding the details of the acquisition, we have made official disclosures through various channels, so we will not go into detail here. What I can promise is that Microchip will continue to provide customers with solutions based on MIPS and ARM technologies, and will continue to produce the Microchip PIC32 and Atmel SAM 32-bit products. We will also continue to support and invest in our growing family of 8-bit PICs and AVR MCUs.
Microchip plans to fully support both Atmel Studio 7 and the MPLAB X IDE for the foreseeable future. No matter which platform customers prefer, they can enjoy high-quality service. Of course, we will continue to adhere to our customer-centric philosophy that we have maintained for many years – we will continue to provide customers with specific devices as long as they need them.
Ganesh Moorthy, COO and President of Microchip
While Microchip has always emphasized its ability to support both MIPS and ARM cores, there are also many people who believe that supporting both architectures will distract the company.
In fact, Microchip has been providing customers with ARM-based products for several years for specific applications. Microchip has never focused on "one core", we have focused on providing a complete solution "one platform". To my knowledge, we are the only provider on the market that offers both MIPS-based and ARM-based solutions, which allows us to better provide the best solutions to solve our customers' design challenges.
We believe that devices that support both cores will help the company grow and provide better support to our customers. Today, we have an unprecedented ability to better support our customers and meet all their design needs.
Not long ago, Solomon Systech announced the acquisition of Microchip's advanced mobile touch technology assets and semiconductor products for a total cash price of US$23 million, does this mean that Microchip's product strategy has changed? What application areas will Microchip focus more on in the future?
The sale of the mobile touch business to Solomon Systech will not have an impact on Microchip's product strategy.
Prior to the acquisition of Atmel, Microchip was already a pioneer in touch technology, and the addition of Atmel has brought us many advanced touch products, including maXTouch. These advanced touch products are not included in this sale, and Microchip will continue to play an important role in the touch space.
Steve Sanghi, chairman of the board and CEO of Microchip, once said that the transaction confirms Microchip's earlier announced plan to sell our non-core mobile touch assets acquired through the acquisition of Atmel. We are very pleased that this transaction was made possible so quickly.
This transaction will not affect the company's current and future operations. The mobile touch business sold to Solomon Systech has been classified as an 'asset for sale' since April 4, 2016, and is not included in our subsequent operations.
Since the completion of the acquisition of Atmel on April 4, 2016, Microchip has been committed to Atmel-related integration efforts, including: achieving significant financial gains from subsequent businesses; Integrate Atmel employees into Microchip and adapt to our corporate culture; Actively market our mobile touch assets that were previously up for sale. This will significantly enhance Atmel's business model, resulting in strong long-term returns for the company's shareholders.
How do the 32-bit products of the two companies complement each other?
Due to their different strengths and emphasis, many 32-bit MCU products are actually largely complementary. For example, SAM has a specific series of products specifically targeted for lower power consumption and 5V operating voltages, while the PIC32 has a more optimized product line for audio and graphics solutions. In the future, we plan to continue to produce SAM and PIC32 series products.
In addition to supporting 32-bit processor products, will Atmel START continue to support the 8-bit AVR product line in the future?
Yes, while it is too early to commit to any specific date at this early stage, we always believe that modern rapid prototyping tools, including START and MPLAB code configurators, are strategically important for customers who are committed to delivering competitive and innovative solutions in this rapidly evolving industry.
Both companies have joined forces with a wide range of partners to provide customers with technical expertise, consulting services, and software and hardware design and production support. How will Microchip manage these partners from both companies?
We take all our partnerships very seriously, including IAR and Keil, two new partners. These partnerships are critical to Atmel's strong track record, especially for SAM, ARM family of devices, and AVR products. We will continue to build on these partnerships and continue to expand Microchip's global network of design partners and third-party suppliers.
Now that Microchip has formed a complete and affordable low-power 32-bit microcontroller product line, will the investment in 8-bit products inevitably decrease?
No. We found that there are actually many embedded control applications that demand unique performance that only 8-bit products can provide: ease of use, 5V operating voltage, robustness, noise immunity, real-time performance, durability, integration of analog and digital peripherals, ultra-low quiescent power consumption, and more. We believe that it is inappropriate/sufficient to classify such a complex product as a modern microcontroller in terms of digits. We believe that having the right peripherals is really the most critical factor.
How do the security products of the two companies work together?
Atmel and Microchip's security products complement each other. Atmel has a wide range of encryption and secure MPU products. Microchip also has a broad product line in hardware-based encryption MCUs and security software solutions. The combination of the strengths of both parties results in a comprehensive security solution that can fully meet the needs of customers.
Is there some overlap between Atmel and Microchip's storage products?
Yes, Atmel and Microchip have a high degree of overlap in their serial EEPROM product lines. We do not have any plans to stop production, and all products in production will continue to be supplied. Microchip offers a broader range of storage product lines, including serial flash, parallel flash, and serial SRAM, all of which are products that Atmel lacks. Atmel complements Microchip's unique parallel EEPROM and EPROM offerings.
How does Microchip handle Atmel's Wi-Fi product line?
Atmel's Wi-Fi portfolio is highly competitive in terms of low power consumption, small form factor and low cost. Atmel and Microchip's Wi-Fi products have merged into a single, unified product family. We do not have any plans to stop production, and all products in production will continue to be supplied.
Are there overlaps between the two companies' analog products that cause redundancy, and will Microchip retire its own or Atmel's products?
We have no plans to retire any of the standalone products from any one company because our standalone analog product lines have no or almost no overlap. We have found that the products of both companies have different strengths, so we are combining our different temperature sensor products, as well as CAN, LIN and power conversion products, into a single product family.
What kind of future product roadmap does the company have?
While we are not comfortable disclosing the specifics of our roadmap, we can share with you that we are committed to expanding our product line to meet the needs of our customers.