Microchip Technology Declares Quarterly Cash Dividend of 35.3 Cents Per Share

  Microchip Technology Declares Quarterly Cash Dividend of 35.3 Cents Per

Business Wire

CHANDLER, Ariz. -- February 7, 2013

Microchip Technology Incorporated (NASDAQ: MCHP), a leading provider of
microcontroller, mixed-signal, analog and Flash-IP solutions, today announced
that its Board of Directors has declared a quarterly cash dividend on its
common stock of 35.3 cents per share. The dividend is payable on March 7, 2013
to stockholders of record on February 21, 2013. Microchip initiated quarterly
cash dividend payments in the third quarter of fiscal year 2003 and has
increased its dividend 36 times since its inception.

“Microchip grew its cash and investments balance to $1.77 billion at December
31, 2012, and our cash generation continues to be very strong,” said Steve
Sanghi, President, Chief Executive Officer and Chairman of the Board. “Our
Board of Directors authorized an increase in our quarterly cash dividend to a
record 35.3 cents per share, a demonstration of our ongoing commitment to
return value to our stockholders.”

Cautionary Statement:

The statements contained in this release relating to cash generation
continuing to be very strong and our commitment to return value to our
stockholders are forward-looking statements made pursuant to the safe harbor
provisions 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: actual cash flows generated
from and used in the operation of our business; actual or projected levels of
capital expenditures; our balance of cash and investments and whether such
cash and investments are in the U.S. or foreign accounts; the tax impact of
distributing accumulated earnings and profits held by our foreign subsidiaries
to the U.S.; changes in the tax rates that our stockholders pay on our
dividends; the impact of any significant acquisitions we may make; our ability
to realize the expected benefits of our SMSC acquisition, changes in demand or
market acceptance of our products and the products of our customers; the mix
of inventory we hold and our ability to satisfy short-term orders from our
inventory; changes in utilization of our manufacturing capacity and our
ability to effectively manage our production levels; our ability to control
the level of operating expenses relative to our level of revenues; competitive
developments including pricing pressures; the level of orders that are
received and can be shipped in a quarter; the level of sell-through of our
products through distribution; changes or fluctuations in customer order
patterns and seasonality; costs and outcome of any current or future tax audit
or any litigation involving intellectual property, customers or other issues;
disruptions in our business or the businesses of our customers or suppliers
due to natural disasters (including any floods in Thailand), terrorist
activity, armed conflict, war, worldwide oil prices and supply, public health
concerns or disruptions in the transportation system; and general economic,
industry or political conditions in the United States or internationally.

For a detailed discussion of these and other risk factors, please refer to
Microchip's filings on Forms 10-K and 10-Q. You can obtain copies of Forms
10-K and 10-Q and other relevant documents for free at Microchip’s website
(www.microchip.com) or the SEC's website (www.sec.gov) or from commercial
document retrieval services.

Stockholders of Microchip are cautioned not to place undue reliance on our
forward-looking statements, which speak only as of the date such statements
are made. Microchip does not undertake any obligation to publicly update any
forward-looking statements to reflect events, circumstances or new information
after this February 7, 2013 press release, or to reflect the occurrence of
unanticipated events.

About Microchip:

Microchip Technology Incorporated is a leading provider of microcontroller,
mixed-signal, analog and Flash-IP solutions, providing low-risk product
development, lower total system cost and faster time to market for thousands
of diverse customer applications worldwide. Headquartered in Chandler,
Arizona, Microchip offers outstanding technical support along with dependable
delivery and quality. For more information, visit the Microchip website at

The Microchip logo and name are registered trademarks of Microchip Technology


Microchip Technology Incorporated
J. Eric Bjornholt, 480-792-7804
Gordon Parnell, 480-792-7374
Vice President of Business Development and Investor Relations
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