Stephen Sanghi on tariff policy
From Microchip Technology Inc ($MCHP) Q4 2025 Earnings Call · · Castify Earnings Call
“The current rules are actually incentivizing moving product out of US which is opposite of what they intended. They were trying to get more people to make parts in US and we are moving mask sets as we speak from US to Taiwan wherever we have dual source so that we don't have to pay a tariff going into China.”
On , Stephen Sanghi, Chief Executive Officer, President & Chair of the Board at Microchip Technology Inc, spoke about tariff policy during Microchip Technology Inc ($MCHP) Q4 2025 Earnings Call on Castify Earnings Call.
About Stephen Sanghi
Stephen Sanghi, CEO, President, and Chair of the Board of Microchip Technology, stated during the company’s Q4 fiscal year 2025 earnings call on March 31, 2026, that the company had turned a corner, calling the last quarter a revenue bottom. He reported that bookings increased significantly in the March quarter and that the company’s book-to-bill ratio reached 1.07 after nearly three years below 1.0. Sanghi said the company aims to reduce inventory by over $350 million to free up cash, and he noted that the company is not considering any cut to the dividend. Sanghi also discussed the impact of tariffs, stating that current rules are incentivizing moving product out of the U.S., contrary to their intended purpose, and that Microchip is moving mask sets from the U.S. to Taiwan to avoid tariffs on shipments to China. He expressed optimism about the September quarter, noting that September backlog is higher than the June quarter backlog was at the same point in time.