Microchip Technology Declares Quarterly Cash Dividend/Maintains Dividend Level at 33.9 Cents Per Share

MICROCHIP TECHNOLOGY DECLARES
QUARTERLY CASH DIVIDEND; MAINTAINS
DIVIDEND LEVEL OF 33.9 CENTS PER SHARE

Chandler, Arizona – August 6, 2009 – (NASDAQ: MCHP) – Microchip Technology Incorporated, a leading provider of microcontroller and analog semiconductors, today announced that its Board of Directors has declared a quarterly cash dividend on its common stock of 33.9 cents per share. The dividend is payable on September 3, 2009 to stockholders of record on August 20, 2009. Microchip initiated quarterly cash dividend payments in the third quarter of fiscal year 2003 and is maintaining the dividend at the same level as the previous quarter.

“We are pleased to announce a quarterly cash dividend of 33.9 cents per share and our Board of Directors’ continued commitment to returning value to our investors through our dividend policy,” said Steve Sanghi, President and CEO. “Microchip’s cash flow from operations has remained strong through these difficult economic times and is reflective of the overall strength of our business model.”

Cautionary Statement:

The statements contained in this release relating to our continued commitment to return value to our investors and the overall strength of our business model are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties that could cause actual results to differ materially, including, but not limited to: actual cash flows generated from and used in the operation of our business; actual or projected levels of capital expenditures; our balance of cash and cash equivalents; changes in demand or market acceptance of our products and the products of our customers; the mix of inventory we hold and our ability to satisfy short-term orders from our inventory; changes in utilization of our manufacturing capacity; our ability to control the level of operating expenses relative to our level of revenues, competitive developments including pricing pressures; the level of orders that are received and can be

shipped in a quarter; the level of sell-through of our products through distribution; changes or fluctuations in customer order patterns and seasonality; costs and outcome of any current or future tax audit or any litigation involving intellectual property, customers or other issues; the impact of any significant acquisitions we may make; disruptions in our business or the businesses of our customers or suppliers due to natural disasters, terrorist activity, armed conflict, war, worldwide oil prices and supply, public health concerns or disruptions in the transportation system; and general economic, industry or political conditions in the United States or internationally.

For a detailed discussion of these and other risk factors, please refer to Microchip's filings on Forms 10-K and 10-Q. You can obtain copies of Forms 10-K and 10-Q and other relevant documents for free at Microchip’s Web site (www.microchip.com) or the SEC's Web site (www.sec.gov) or from commercial document retrieval services.

Stockholders of Microchip are cautioned not to place undue reliance on our forward-looking statements, which speak only as of the date such statements are made. Microchip does not undertake any obligation to publicly update any forward-looking statements to reflect events, circumstances or new information after this August 6, 2009 press release, or to reflect the occurrence of unanticipated events.

About Microchip:

Microchip Technology Incorporated is a leading provider of microcontroller and analog semiconductors, providing low-risk product development, lower total system cost and faster time to market for thousands of diverse customer applications worldwide. Headquartered in Chandler, Arizona, Microchip offers outstanding technical support along with dependable delivery and quality. For more information, visit the Microchip Web site at www.microchip.com.

The Microchip logo and name are registered trademarks of Microchip Technology Incorporated.

Original text is here