M&A

Microchip buys VORAGO to expand its rad-hardened chip lineup

What's the deal? Microchip Technology has acquired VORAGO Technologies, an Austin-based provider of radiation-hardened and radiation-tolerant microcontrollers (MCUs) and microprocessors (MPUs). Terms were not disclosed, and the deal is not expected to be material to Microchip's consolidated financial results.

What each side brings: Microchip is a broadline semiconductor supplier listed on the Nasdaq. VORAGO makes chips designed to keep running in high radiation and extreme heat — conditions where standard electronics fail — suiting them for space, defense, and industrial use.

What's the endgame? The deal adds a family of rad-hard MCUs and MPUs that complement Microchip's existing aerospace and defense lines, plus VORAGO's patented HARDSIL process technology. HARDSIL cuts the time and cost of developing new rad-hard products and can boost the radiation tolerance of existing chips without a redesign.

Why now? "From terrestrial defense systems to satellite and space-based platforms, our aerospace and defense customers are designing systems that must operate reliably in increasingly harsh and complex environments," said Steve Sanghi, Microchip's chief executive officer and president.

The acquisition also brings a team with deep radiation-hardening expertise that Microchip plans to apply across its broader business.

The signal: Microchip is positioning to capture a larger share of the aerospace, defense, and space markets, which have seen accelerating investment across both defense and commercial space programs. "Joining Microchip gives us the opportunity to build on that foundation with greater scale, broader capabilities and the resources to serve a rapidly growing space market," said Bernd Lienhard, VORAGO's chief executive officer.

Read more: AP News

Image credit: Generated with Gemini

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