Microchip Technology (MCHP) vs Tower Semiconductor (TSEM)
Head-to-head comparison of performance, valuation, growth, profitability and dividends. Prices delayed 15 minutes; data as of Oct 8, 2026.
Summary
Tower Semiconductor (TSEM) has outperformed Microchip Technology (MCHP) over the past year, gaining 208.5% versus a gain of 12.9%. Over five years, TSEM leads with a +657.2% price change compared with +3.8% for MCHP. Microchip Technology is the larger company by market cap ($41.01 billion vs $25.86 billion), about 1.6 times the size, while Tower Semiconductor is growing revenue faster (+9.1% vs +7.1%).
On valuation, Microchip Technology trades at a lower forward P/E (16.5x vs 34.1x for Tower Semiconductor). Microchip Technology pays a dividend yielding 2.41%, while Tower Semiconductor does not currently pay one. Tower Semiconductor converts more of its revenue into profit, with a net margin of 14.1% versus 4.9%.
Summary generated from market data by MetaCap's automated system. Methodology
Relative performance
Percent change in share price from the first common trading day shown; excludes dividends.
Head-to-head
| Metric | MCHP | TSEM |
|---|---|---|
| Share price | $75.52 | $228.75 |
| Market cap | $41.01B | $25.86B |
| 1-day change | -3.20% | -7.85% |
| YTD return | +18.52% | +94.81% |
| 1-year return | +12.85% | +208.45% |
| 5-year return | +3.76% | +657.20% |
| P/E ratio (TTM) | 111.06 | 90.42 |
| Forward P/E | 16.48 | 34.09 |
| EPS (TTM) | $0.68 | $2.53 |
| Dividend yield | 2.41% | 0.00% |
| Annual dividend | $1.82 | $0.00 |
| Revenue (latest FY) | $4.71B | $1.57B |
| Revenue growth (YoY) | +7.08% | +9.05% |
| Net income (latest FY) | $230.00M | $220.47M |
| Gross margin | 57.73% | 23.23% |
| Operating margin | 10.40% | 12.40% |
| Net margin | 4.88% | 14.08% |
| 52-week high | $105.91 | $319.94 |
| 52-week low | $48.52 | $70.90 |
| Distance from 52-week high | -28.69% | -28.50% |
| Analyst consensus | buy | strong_buy |
| Avg. price target upside | +42.80% | +36.80% |
| Average volume | 9.28M | 1.89M |
| Shares outstanding | 543.01M | 113.03M |
| Employees | 17,900 | — |
| Sector | Technology | Technology |
| Industry | Semiconductors | Semiconductors |
Highlighted cells mark the higher value for growth, returns, margins and yield, and the lower value for P/E ratios. Highlighting is a mechanical comparison, not a recommendation.
Key differences
- TSEM has outperformed MCHP by 195.6 percentage points over the past year.
- Microchip Technology offers a meaningfully higher dividend yield (2.41% vs 0.00%).
- Tower Semiconductor is more profitable, keeping 14.1 cents of every revenue dollar as net income versus 4.9 cents for Microchip Technology.
About Microchip Technology
MCHP stock →Microchip Technology Incorporated develops, manufactures, and sells smart, connected, and secure embedded control solutions in the Americas, Europe, and Asia. It operates in two segments, Semiconductor Products and Technology Licensing.
Technology · Semiconductors · 17,900 employees
About Tower Semiconductor
TSEM stock →Tower Semiconductor Ltd., an independent semiconductor foundry, provides technology, development, and process platforms for integrated circuits in the United States, Japan, rest of Asia, and Europe. The company provides customizable process technologies, including SiGe, SiPho, mixed signal CMOS, RF CMOS, CMOS image sensor, non-imaging sensors, wafers, and integrated power management.
Technology · Semiconductors
MCHP vs TSEM FAQ
Which is bigger, Microchip Technology or Tower Semiconductor?
Microchip Technology (MCHP) is larger, with a market capitalization of $41.01B compared with $25.86B for Tower Semiconductor (TSEM).
Which stock has performed better over the past year, MCHP or TSEM?
TSEM returned +208.45% over the past 12 months, compared with +12.85% for MCHP (price return, excluding dividends). Past performance does not predict future results.
Which has the lower P/E ratio, MCHP or TSEM?
TSEM has the lower trailing P/E at 90.4, versus 111.1 for MCHP. A lower P/E is not by itself a sign of a better investment; it can reflect slower expected growth or higher risk.
Which pays a higher dividend, Microchip Technology or Tower Semiconductor?
Microchip Technology pays a dividend yielding 2.41%, while Tower Semiconductor does not currently pay a regular dividend.
Are Microchip Technology and Tower Semiconductor in the same industry?
Yes. Both are classified in the Semiconductors industry within the Technology sector.