Ganesh Moorthy on data centers

About Ganesh Moorthy

Ganesh Moorthy, CEO of Microchip Technology, has described the company as being in a "major inventory correction" that has persisted for several quarters. In late 2024, Moorthy stated that the weakness is most pronounced in the industrial and automotive sectors, particularly in Europe and North America. He noted that while aerospace, defense, and the AI segment of data centers remain strong, he could not point to a particular end market that is improving. Moorthy characterized the situation as a "classic inventory correction amplified by macro concerns," adding that the company is shipping "substantially below consumption." He stated that the company expects the inventory correction to continue through the current quarter, but expressed optimism about the second half of the year based on some leading indicators. Moorthy has outlined the company's response to the downturn, which includes running factories at lower utilization and implementing a company-wide salary sacrifice, with the highest reductions at the senior levels. He stated that the company is focused on preserving gross operating margins and cash flow, and that despite the trough of the correction, Microchip was still forecasting operating margins above 30%. Moorthy also discussed the company's plans for U.S. expansion, noting that Microchip is working with the CHIPS Program Office as an early recipient of a preliminary memorandum of terms and intends to create additional capacity and jobs in the United States over a multi-year period. He described the CHIPS Act as good for the industry and for America, enabling critical investments for economic and national security.

Profile compiled from Ganesh Moorthy's verified public interviews and appearances. See all quotes & transcripts →