# Who does Microchip Technology pay? Who are its key suppliers?
Canonical: https://valuechain.wiki/microchip · Facet: suppliers · Updated: 2026-07-12T04:52:22.806+00:00 · Source: ValueChain.wiki (cited money-flow graph)

**Citable summary**: Microchip Technology's confirmed suppliers/cost counterparties include TSMC plus 1 undisclosed/aggregate relationship. Per the valuechain.wiki graph: 2 cost edges, backed by 3 dated sources, 2 of them primary filings (as of 2026-07-12).

### 자체 팹 수직통합·자본배치(Fab 4 보류·배당) (high)
- note: Ownership of wafer fabs, assembly and test is the core capital investment behind its cost edge and supply resilience — the basis for being one of the lowest-cost producers in embedded control — though it throttles capacity investment in soft demand (Fab 4 Oregon expansion paused through FY2027). Capital allocation tilts to shareholder return over reinvestment: FY2026 common dividends $984.0M (cumulative $8.61B) and preferred dividends $108.5M.
- [confirms] Microchip Technology (SEC 10-K) (EN, filing, published 2026-05-21) https://www.sec.gov/Archives/edgar/data/827054/000082705426000016/mchp-20260331.htm: "Owned-fab strategy (lowest-cost producer); FY2026 common dividends $984.0M (cumulative $8.61B); Fab 4 paused."

### TSMC (mid)  → /tsmc.md
- note: A mixed-fab structure outsourcing some products to TSMC and other external foundries — ~65% of FY2026 sales came from products made at outside foundries (all 300mm plus some 200/150mm specialty processes), giving capacity flexibility alongside in-house fabs but exposing some leading/specialty processes to foundry capacity, pricing and geopolitical risk.
- [confirms] Microchip Technology (SEC 10-K) (EN, filing, published 2026-05-21) https://www.sec.gov/Archives/edgar/data/827054/000082705426000016/mchp-20260331.htm: "~65% of FY2026 sales made at outside foundries (all 300mm + some specialty)."
- [confirms] Stockplus (KO, news, published 2026-01-01) https://insight.stockplus.com/articles/5224: "In-house fabs plus TSMC."

### 자체 팹·후공정 (비공개) (low)
- note: In-house wafer fabs, assembly and test are the cost/supply axis — securing cost competitiveness, supply stability and IP security for mature processes, but falling utilization becomes a fixed-cost (underutilization) burden. In FY2026 ~67% of assembly and ~69% of test were internal, and Fab 4 (Oregon) expansion and capital investment were paused through FY2027 in response to soft demand.
- [confirms] Microchip Technology (SEC 10-K) (EN, filing, published 2026-05-21) https://www.sec.gov/Archives/edgar/data/827054/000082705426000016/mchp-20260331.htm: "~67% assembly/69% test internal; Fab 4 expansion paused through FY2027."
- [confirms] SEC EDGAR (EN, filing, published 2025-08-01) https://www.sec.gov/Archives/edgar/data/0000827054/000082705425000132/exhibit991q1fy26.htm: "Many processes in own fabs."

Reverse side: https://valuechain.wiki/microchip/customers.md · Ripple: https://valuechain.wiki/microchip/ripple.md

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Full node: https://valuechain.wiki/microchip.md · JSON: https://valuechain.wiki/microchip.json