Microchip Technology - 1792 Exchange

Rating Overview

Microchip Technology is Medium Risk.

Microchip Technology Incorporated is Medium Risk. The company often yields to political activism in shaping corporate governance, potentially alienating consumers, dividing employees, and harming shareholders. The company implements race and identity-based policies that replace merit, excellence, and integrity with preferential treatment and outcomes. The company occasionally embraces corporate initiatives that redirect its central focus from business goals to partisan policies and divisive issues at times. This approach fails to safeguard free exercise, free speech, and free enterprise.

Rating Criteria

Corporate Weaponization Risk Levels
Criteria	Risk Level
Cancellations	Medium Risk
Discriminatory Philanthropy	Lower Risk
Employment Protection	High Risk

Corporate Weaponization ⓘ

Corporate Governance and Public Policy Risk Levels
Criteria	Risk Level
Advocacy Bias	High Risk
Funding	Lower Risk
Political Actions	No Data

Corporate Governance and Public Policy ⓘ

Rating Criteria Detail

Criteria Risk Level Rationale

Corporate Weaponization

Criteria:

Has canceled customers, suppliers, or vendors due to their political views or religious beliefs OR corporately boycotts, divests, or sanctions regions, people groups, or industries.

Risk Level:

Medium

Rationale:

Microchip Technology integrates ESG into its business practices. From its Supplier Code of Conduct: “Participants are to establish a corporate-wide greenhouse gas reduction goal. Energy consumption and all relevant Scopes 1 and 2 greenhouse gas emissions are to be tracked, documented, and publicly reported against the greenhouse gas reduction goal. Participants are to look for methods to improve energy efficiency and to minimize their energy consumption and greenhouse gas emissions.” (1). The company promotes divisive sex and gender policies. Its Supplier Code of Conduct requires international vendors to include sexual orientation and gender identity in their nondiscrimination policy (2). However, the company has not canceled customers, suppliers, or vendors based on political views or religious beliefs (3).

Criteria:

Charitable giving (including employee matching programs) policies or practices discriminate against charitable organizations based on views or religious beliefs.

Risk Level:

Lower

Rationale:

Microchip Technologies does not appear to discriminate against charitable organizations based on views or beliefs (1).

Criteria:

Employment policies fail to protect against viewpoint or other discrimination and/or are ideological in nature.

Risk Level:

High

Rationale:

Microchip Technologies appears to prioritize diversity over merit in its recruitment, promotions, and mentorship program. From its 2023 Microchip Sustainability Report: “Microchip reinforces these values with programs to foster greater dialogue and mentorship opportunities for employees of underrepresented groups, and we have implemented methods to recruit, retain, and promote qualified candidates from diverse groups.” (1). The company appears to prioritize diversity over merit in its hiring: “We are dedicated to embracing inclusive hiring practices and providing equal employment opportunities to all individuals.” (2). Microchip Technologies appears to prioritize diversity over merit in its leadership composition: “Accordingly, the NGSC considers issues of diversity in identifying and evaluating director nominees, including differences in education, professional experience, viewpoints, technical skills, individual expertise, ethnicity, and gender” (3). However, in 2025, the company stopped publishing its Sustainability Report. To date, the company has not publicly addressed these changes, leaving shareholders without clarity regarding the company’s reasoning or future direction (4). 100% of the company’s worldwide managers completed “leadership training classes on the importance of diversity and inclusion” in 2023 (5). Microchip Technology appears to prioritize diversity over merit in its leadership composition. From its Corporate Governance Guidelines: “The Board believes it is important that the members of the Board represent diverse viewpoints and be committed to serving the best interests of the Company…. Accordingly, the Nominating, Governance, and Sustainability Committee considers issues of diversity in identifying and evaluating director nominees, including differences in education, professional experience, viewpoints, technical skills, individual expertise, ethnicity and gender.” (6). The company protects its employees against viewpoint discrimination (7).

Corporate Governance and Public Policy

Criteria:

Uses corporate reputation to support causes, organizations, or policies hostile to freedom of expression.

Risk Level:

High

Rationale:

Microchip Technology is committed to net zero carbon emissions by 2040 (1). The company supports DEI within its business practices. From its 2023 Microchip Sustainability Report: “At Microchip, we understand that our commitment to inclusion, diversity, and equal opportunity for all begins at the top. We believe diversity is a fact, inclusion is a choice, and a sense of belonging is the result” (2). Microchip Technology supports ESG within its business practices. From its 2023 Microchip Sustainability Report: “Microchip addresses a wide range of ESG topics within this sustainability report that showcase our commitment to environmental sustainability, community involvement, and long-term economic value creation. We strive to transparently communicate our efforts and progress across the ESG topics presented within the five tenets of Microchip’s 360° Sustainability Approach” (3). The company employs an ESG Steering Committee (4). However, in 2025, Microchip Technology stopped publishing its Sustainability Report. To date, the company has not publicly addressed these changes, leaving shareholders without clarity regarding the company’s reasoning or future direction (5).

Criteria:

Uses corporate funds to advance ideological causes, organizations, or policies hostile to freedom of expression.

Risk Level:

Lower

Rationale:

Microchip Technology has not used corporate funds to advance ideological causes, organizations, or policies (1).

Criteria:

Uses corporate political actions and/or financial contributions for ideological, non-business purposes.

Risk Level:

N/A

Rationale:

Microchip Technology does not operate a PAC or report on its lobbying at this time (1)(2)(3).