Microchip Technology vs ON Semiconductor
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The short version
- ON Semiconductor is the larger business, with $6.0B of revenue in fiscal 2025 against $4.7B for Microchip Technology.
- Microchip Technology grew revenue faster (7.1%, against −15.4%).
- Microchip Technology kept more of each dollar of sales as operating profit (10.4% operating margin, against 1.4%).
- ON Semiconductor turned more of its sales into free cash flow (23.7% FCF margin, against 18.5%).
- Microchip Technology earned a higher return on the capital invested in it (3.5%, against 0.9%).
- Investors pay more for each dollar of Microchip Technology’s earnings: a P/E of 108.9x against 46.6x for ON Semiconductor.
| Latest fiscal year | MCHP · FY26 | ON · FY25 |
|---|---|---|
| Size | ||
| Market cap | $40.8B | $29.2B |
| Revenue | $4.7B | $6.0B |
| Free cash flow | $871M | $1.4B |
| Net income | $230M | $121M |
| Growth | ||
| Revenue growth | 7.1% | −15.4% |
| 5-year growth | −2.8% | 2.7% |
| Share count change | 1.5% | −4.8% |
| Profitability | ||
| Gross margin | 57.7% | 33.1% |
| Operating margin | 10.4% | 1.4% |
| Net margin | 4.9% | 2.0% |
| FCF margin | 18.5% | 23.7% |
| Return on capital | 3.5% | 0.9% |
| Return on equity | 3.4% | 1.5% |
| Balance sheet | ||
| Net debt | $5.3B | $457M |
| Net debt / EBITDA | 4.5x | 0.6x |
| Dividends and buybacks | $984M | $1.4B |
| Valuation & quality | ||
| P/E | 108.9x | 46.6x |
| Piotroski F-score | 6 | 5 |
Revenue
FY17
MCHP $3.4B
ON $5.5B
FY18
MCHP $4.0B
ON $5.9B
FY19
MCHP $5.3B
ON $5.5B
FY20
MCHP $5.3B
ON $5.3B
FY21
MCHP $5.4B
ON $6.7B
FY22
MCHP $6.8B
ON $8.3B
FY23
MCHP $8.4B
ON $8.3B
FY24
MCHP $7.6B
ON $7.1B
FY25
MCHP $4.4B
ON $6.0B
FY26
MCHP $4.7B
ON —
MCHP
ON
Operating margin
FY17
MCHP 8.1%
ON 12.3%
FY18
MCHP 23.5%
ON 14.4%
FY19
MCHP 13.4%
ON 7.8%
FY20
MCHP 12.3%
ON 6.6%
FY21
MCHP 18.4%
ON 19.1%
FY22
MCHP 27.1%
ON 28.3%
FY23
MCHP 36.9%
ON 30.8%
FY24
MCHP 33.7%
ON 25.0%
FY25
MCHP 6.7%
ON 1.4%
FY26
MCHP 10.4%
ON —
MCHP
ON
Free cash flow
FY17
MCHP $1.0B
ON $707M
FY18
MCHP $1.2B
ON $759M
FY19
MCHP $1.4B
ON $160M
FY20
MCHP $1.5B
ON $501M
FY21
MCHP $1.8B
ON $1.3B
FY22
MCHP $2.5B
ON $1.6B
FY23
MCHP $3.1B
ON $438M
FY24
MCHP $2.6B
ON $1.2B
FY25
MCHP $772M
ON $1.4B
FY26
MCHP $871M
ON —
MCHP
ON
Return on capital
FY17
MCHP 7.8%
ON 14.1%
FY18
MCHP 10.3%
ON 14.0%
FY19
MCHP 7.4%
ON 6.0%
FY20
MCHP 4.3%
ON 5.7%
FY21
MCHP 7.0%
ON 17.9%
FY22
MCHP 11.8%
ON 29.1%
FY23
MCHP 18.5%
ON 28.7%
FY24
MCHP 16.5%
ON 16.9%
FY25
MCHP 1.2%
ON 0.9%
FY26
MCHP 3.5%
ON —
MCHP
ON
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.