Microchip announced the launch of its Model Context Protocol (MCP) Server on November 6 2025. The server is a free, AI‑enabled interface that connects directly with large language models and other AI tools, delivering verified product data—including specifications, datasheets, inventory levels, pricing and lead times—through a standard HTTP/JSON stream.
The MCP Server allows engineers to retrieve product information via conversational queries, integrating with AI copilots, chatbots, LLM‑based integrated development environments and enterprise AI agents. By removing the friction of manual data lookup, the tool accelerates design cycles and reduces time‑to‑market for new products.
The launch aligns with Microchip’s broader AI strategy and its Total System Solution approach. By expanding its developer ecosystem, the company aims to increase customer engagement and create new revenue opportunities in automotive, industrial, consumer and data‑center segments, positioning itself more competitively in the AI‑driven embedded control market.
Despite the product announcement, Microchip’s Q3 2025 earnings revealed significant challenges. Revenue fell 41.9% year‑over‑year to $1.026 billion, missing the consensus estimate of $1.13 billion. Earnings per share of $0.20 were below the $0.33 estimate, reflecting weak demand in legacy product lines, macro‑economic headwinds and inventory adjustments that pressured margins.
Management emphasized the need for cost discipline and strategic investment. COO Rich Simoncic noted that the MCP Server is part of a broader effort to harness AI to boost productivity. The company guided Q4 2025 revenue to $920 million–$1.0 billion and EPS to $0.05–$0.15, signaling a cautious outlook amid ongoing demand uncertainty and cost pressures.
The free availability of the MCP Server is expected to accelerate design cycles and potentially offset revenue pressure over the long term. However, the current financial performance underscores the need for continued demand recovery and disciplined cost management as Microchip navigates a challenging market environment.
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