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Microchip Technology Declares Quarterly Cash Dividend Increase to 41.3 Cents Per Share

CHANDLER, Ariz., May 6, 2021 (GLOBE NEWSWIRE) – (NASDAQ: MCHP) – Microchip Technology Incorporated, a leader in intelligent, connected, and secure embedded control solutions, announced today that its board of directors has declared a quarterly cash dividend on the Ordinary shares of 41.3 cents per share. The dividend is payable on June 4, 2021 to the registered shareholders on May 21, 2021. Microchip initiated quarterly cash dividend payments in the third quarter of fiscal 2003, increasing dividends 67 times since inception.

“Microchip’s financial performance in March 2021 was very strong, resulting in significant cash generation and debt reduction,” said Steve Sanghi, executive chairman. β€œIn our dividend announcement of February 2021, the Microchip Board of Directors embarked on a path to higher dividends as part of our cash return strategy. Our board is pleased to announce a 5.9% increase in our quarterly dividend to a record 41.3 cents per share. This continues to reflect our confidence in the cash-generating ability of our business, as well as our continued commitment to bringing value back to our shareholders. ”

Warning notice:

The statements contained in this press release regarding our path to higher dividends, our cash return strategy, confidence in the cash-generating ability of our business, and our continued commitment to return value to our shareholders are forward-looking statements made in accordance with the safe Port Regulations of the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties that could cause actual results to differ materially, including, but not limited to: uncertainties regarding the effects of the COVID-19 pandemic on Economy, our business and the business of our customers and suppliers, actual cash flows generated from and used in our business; actual or forecast capital expenditures; our balance between cash and investments; Changes in the tax rates our shareholders pay on our dividends or other changes in US tax laws, including the Tax Cut and Jobs Act of 2017; our available credit under our credit agreement; the impact of any material acquisitions that we may make; our ability to realize the anticipated benefits of our acquisitions changes to

Demand or market acceptance of our products and those of our customers and our ability to meet an increase in market demand; the mix of inventory and our ability to fulfill short-term orders from our inventory; Changes in the utilization of our manufacturing capacity and our ability to effectively control our production levels and increase production to meet increasing market demands; our ability to obtain additional capacity from our wafer foundries and other suppliers to increase production to meet increasing market demands; our ability to control the level of operating costs in relation to our income; Competitive developments including price pressures; the number of orders that can be received and shipped in a quarter; Changes or fluctuations in customer order patterns and seasonality; the cost and outcome of any current or future litigation or other matters affecting our microsemi acquisition, microsemi business, intellectual property, customers, or other issues; the costs and results of any current or future tax audit or investigation relating to our business or Microsemi’s business; Disruption in our business or in the business of our customers or suppliers due to natural disasters (including flooding in Thailand), terrorist activity, armed conflict, war, global oil prices and supplies, public health concerns (including COVID-19), or disruption to the Transport system; and general economic, industrial, or political conditions in the United States or internationally.

For a detailed description of these and other risk factors, see Microchip’s records on Forms 10-K and 10-Q. Copies of Forms 10-K and 10-Q and other relevant documents can be obtained free of charge from Microchip’s website (www.microchip.com) or the SEC’s website (www.sec.gov), or from commercial document retrieval services.

Microchip shareholders are cautioned not to place undue reliance on our forward-looking statements, which speak only as of the date such statements are made. Microchip undertakes no obligation to publicly update any forward-looking statements to reflect events, circumstances, or new information subsequent to this press release dated May 6, 2021, or the occurrence of unexpected events.

About Microchip:

Microchip Technology Incorporated is a leading provider of intelligent, connected, and secure embedded control solutions. The easy-to-use development tools and extensive product portfolio enable customers to create optimal designs that reduce risk while lowering the overall cost and time-to-market of the system. The company’s solutions serve more than 120,000 customers in the industrial, automotive, consumer, aerospace, defense, communications, and computing markets. Headquartered in Chandler, Arizona, Microchip offers great technical support and reliable delivery and quality. For more information, see the Microchip website at www.microchip.com.

The Microchip logo and name are registered trademarks of Microchip Technology Incorporated.

INVESTOR RELATIONS CONTACT:

J. Eric Bjornholt – CFO, (480) 792-7804