MCHP FY26: Revenue pressures drive 8% workforce cut, inventory drawdown, extended fab pauses

Filed May 21, 2026 · Period ending March 31, 2026 · Compared to 10-K May 23, 2025 · ~2 min read

Key Changes

• high

  Headcount reduced ~8% (19,400 to 17,900 employees) alongside Fab 2 closure (completed May 2025) and extended expansion pauses at Fab 4/Fab 5 through fiscal 2027 (previously fiscal 2026), reflecting sustained demand weakness.

  Business: Fab closures and headcount verify on EDGAR →
• high

  Inventory decreased $250M to $1.04B (185 days vs. 251 days prior year) as customers worked through excess stock; distributor inventory fell to 26 days from 33 days, signaling channel normalization.

  Notes: Inventory levels verify on EDGAR →
• high

  Settled long-running IRS dispute ($4.0 million, fiscal 2007-2015) in September 2025; German tax assessment ($92M exposure) removed from disclosures without explanation, suggesting resolution or withdrawal.

  Notes: Tax settlements verify on EDGAR →