It is inspiring to see so many leaders in California’s tech ecosystem coming from India. Could you tell us about your journey, from studying in Mumbai to leading Microchip?
My journey is a testament to the American dream, the land of opportunities available to those who work hard, take risks, and continuously learn. At 19, I moved to the U.S., went through school, and joined Intel, a then little-known company. After a rewarding career there, I moved to Microchip. The U.S. and the semiconductor industry, a melting pot of immigrants, fosters innovation and provides numerous opportunities. The semiconductor industry exemplifies this with its constant drive for innovation and opportunities. My experiences as an immigrant have shaped my ability to seize opportunities based on merit and potential.
40 years on, what are the key drivers of continued innovation at Microchip?
For the industry and Microchip, innovation never stops, regardless of business cycles. The heart of our industry revolves around continuous investment in research and development and the willingness to take risks. The pace of innovation demands significant R&D spending to bring out new technologies that can change the world. The semiconductor industry has revolutionized our lives over the past 40 years through relentless innovation and hard work.
This innovation is evident in various products that have become integral to our daily lives, from smartphones and AI to advanced automotive safety features and medical innovations.
Each of these advancements is built on the foundation laid by semiconductors. Our industry’s commitment to innovation ensures the creation of transformative technologies, leading to phenomenal end products that improve our quality of life.
Could you provide some real-world examples of how your work is impacting our readers’ lives?
From the moment you wake up, our products are at work. Your climate control system, whether it is an air conditioner or a thermostat, likely contains our microcontrollers and analog products. Your alarm clock, home security system, and even your electric shaver or toothbrush incorporate our semiconductors. As you make breakfast, our technology is present in your coffee machine, microwave, and kitchen appliances. When you drive to work, your car features numerous components from Microchip, enhancing safety, convenience, and entertainment. Traffic lights and speed cameras on your route also rely on our technology. Throughout the day, our products ensure seamless operation of various devices, from office equipment to consumer electronics, embedded with intelligence, connectivity, and security. In essence, Microchip touches hundreds of aspects of your daily life, often unnoticed but indispensable.
A personal example very close to me involves my older brother, who survived a heart attack about 12 years ago and now relies on an implanted defibrillator. This device includes Microchip products and features wireless telemetry, which allows it to continuously send data about his condition to a home device, which then transmits this information to his doctor. This system can alert the doctor to abnormalities, such as battery life issues or irregular heartbeats, enabling timely medical interventions. This type of technology, while not as complex as some AI applications, exemplifies the life-saving impact of our work.
What is the impact of the CHIPS Act and the challenges of maintaining a global footprint while benefiting from this investment?
There are two aspects to consider: enabling more semiconductor manufacturing in the U.S. and maintaining a global footprint. Over the years, semiconductor manufacturing shifted abroad due to various incentives provided by other countries. Bringing it back requires significant capital, often needing government assistance to reduce risks. Countries like Taiwan, Korea, Japan, Israel, and now Europe and India have historically offered such incentives. The U.S.' industrial policy now aims to do the same, benefiting national and industrial security.
However, I am against the notion of parochialism where each region solely looks after itself. The semiconductor industry thrives on a global scale, leveraging advantages from various countries in process, design, and manufacturing technologies. The goal is to rebalance manufacturing geographically, enhancing resilience against geopolitical uncertainties and natural disasters. The CHIPS Act, with its thoughtful policy of tax incentives and grants, encourages companies to take risks they otherwise might not.
What keeps you up at night when considering the challenges Microchip and the industry face, including supply chain resilience?
The uncontrollables are what concern me the most. While we can strategize and mitigate controllable risks, uncontrollable factors, such as international conflicts or geopolitical disagreements, pose significant challenges. Recent events, like the conflict between Russia and Ukraine, illustrate how unpredictable these factors can be. Although we cannot foresee every potential issue, our focus remains on building strategic resiliency to adapt and find solutions when unexpected problems arise. Insurance against these risks isn't free and requires careful investment decisions. We continuously evaluate the return on investment for mitigation strategies.
What is driving the future direction of Microchip?
We have aligned our market focus with six major megatrends where we foresee substantial innovation and opportunities. First, the rollout of 5G and eventually 6G infrastructure will continue to expand. Second, the growth of data centers and the computational demands they face, especially with the rise of AI, is critical. Third, the expansion of distributed computing and edge computing, often referred to as the Internet of Things (IoT), is another significant area. Fourth, sustainability efforts, including decarbonization and resource conservation, heavily rely on semiconductor technology. Fifth, the shift to electric vehicles and the electrification of transportation will drive demand for our products. Lastly, the increasing intelligence and safety features in vehicles, transforming them into advanced, situationally aware machines, represent a major growth area. Across all these trends, artificial intelligence will play an integral role, from pattern recognition to generative AI capabilities, further enhancing the impact of these advancements in ways we are only beginning to understand.
