Microchip's New MCUs Boost Security, DSCs Ease Code Integration

Microchip Technology Inc. MCHP recently introduced new 32-bit SAM L10 and SAM L11 microcontrollers (MCUs) families based on Arm Cortex-M23 core. With the new products, the company intends to enhance security of Internet of Things (“IoT”) endpoints.

In a separate press release, Microchip also announced dsPIC33CH Digital Signal Controller (“DSC”) family, featuring two dsPIC DSC cores on a single chip. The new DSC enables the software developers to integrate code from multiple design teams.

Highlights on New MCU Families

The new MCUs introduced by Microchip not only function on low power but also deliver high security required by IoT endpoints. SAM L11 works on Arm TrustZone tech. It features Armv8-M, a programmable infrastructure offering hardware isolation amid certified libraries, application code and IP. TrustZone tech in combination with advanced chip-level security and tamper resistance ensures safety of customer applications from physical and remote attacks.

The enhanced features will aid the customers across varied Human Machine Interface (“HMI”) applications, pertaining to appliance, automotive, consumer and medical industries. We believe the new MCU families hold promise given the emerging demand of IoT based applications.

SAM L10 and SAM L11 devices are available in several package alternatives and pin counts in volume production quantities. Devices in the SAM L10 and SAM L11 series are available starting at $1.09 and $1.22 each, respectively in 10,000-unit quantities. Meanwhile, both DM320204 and DM320205 Xplained Pro Evaluation Kits for SAM L10 and SAM L11 are available for $58.00 each.

Details on New DSC Family

With a view to streamline the design and development of applications which require complex algorithms, Microchip introduced dsPIC33CH family of DSCs. The two dsPIC DSC cores are categorized as master and slave. The master core supports the user interface, supervises system and other communications functions, tailored for the end application. The slave core maintains time sensitive control code.

The dsPIC33CH family delivers high power density, enhanced efficiency, improved Digital Signal Processor (“DSP”) performance and accelerated execution. The products enable live updating vital for power supplies applications which require firmware updates to be made in zero downtime.

The diverse applications including the likes of automotive sensors, wireless power, and server power supplies and drones, which require sophisticated algorithms can also benefit from the new offering. The first-of-a-kind two cores in one chip is likely to broaden Microchip’s prospects. We believe the company can gain competitive edge against its peers with this introduction.

The dsPIC33CH comes in eight package options. The 28-pin dsPIC33CH64MP202 is available for lesser than $2.00 each for high volume orders. Packages range between 28 and 80 pins, for memory size in the band of 64-128 KB of Flash. The dsPIC33CH Curiosity development board is available for $34.99 each. The dsPIC33CH PIM for motor control development boards are priced at $25.00 each. The dsPIC33CH PIM for Explorer 16/32 boards are also available for $25.00 each.

What the Investors Need To Know?

Shares of Microchip have gained 20% in the last year, outperforming the industry’s rally of 18.8%. This outperformance can primarily be attributed to solid demand witnessed by the company’s product portfolio and synergies from accretive acquisitions. End-market diversification and operational efficiencies are other tailwinds.

Microchip claims that both the MCU families deliver industry’s lowest power consumption. The capacitive touch capability is also one-of-a-kind. Per EEMBC (Embedded Microprocessor Benchmark Consortium) estimates, SAML10 has an ULPMark of 405, which ensures over 200% improved performance against its closest rival in the market. The Peripheral Touch Controller empowers the MCU families with advanced capacitive touch capabilities.

Furthermore, per GrandViewResearch data, IoT MCU market size is projected to reach $3.56 billion by 2022. The market report reinforces our view and strengthens the prospects of the MCU products.

Microchip is benefiting from robust demand for 8-bit, 16-bit and 32-bit microcontrollers. We believe that Microchip's expanding product portfolio driven by new launches will continue to expand customer base. The new first-of-a-kind dsPIC33CH family of DSCs featuring two cores in one chip also augurs well for the company in the long run.

Zacks Rank & Other Stocks to Consider

Microchip carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the broader technology sector include Western Digital WDC, Seagate STX and NVIDIA Corporation NVDA. All the three stocks sport a Zacks Rank #1 (Strong Buy).  You can see the complete list of today’s Zacks #1 Rank stocks here.

Western Digital, Seagate and NVIDIA have a long-term expected EPS growth rate of approximately 19%, 18.9% and 10.3%, respectively.

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