Direct Answer
60 SEC filers are classified under the Standard Industrial Classification code that describes the microcontrollers industry, and their latest annual reports show $542.8 billion of combined revenue and a median operating margin of -2.3%. Investors should still evaluate its revenue model, industry-specific KPIs, valuation framework and the risks that can change the group's economics.
Industry Overview
Microcontroller makers produce small embedded processors that control devices such as appliances, vehicles, meters and industrial equipment. Revenue is broad-based and sticky, with long design cycles and large ecosystems. The first numbers to compare across companies here are revenue by end market, design wins and gross margin.
Key Industry Metrics
- Revenue by end market: Sales divided among industrial, automotive, consumer and other uses. It shows which markets drive growth, and a broad mix tends to cushion cyclical swings.
- Design wins: Product selections by equipment makers. Microcontrollers are designed in for years, so wins lock in revenue and are a strong signal of future share.
- Gross margin: Revenue left after wafers, assembly and test. Long product lives and internal fabs can support it, while price competition and underused plants reduce it.
- Inventory at distributors: Chips held by resellers. High channel stock leads to order cuts until it clears, so distributor inventory explains why orders can fall below end demand.
- Capacity: Production capability for microcontrollers. After shortages, added capacity supports growth but can lead to oversupply and price pressure if demand cools.
Primary Macro Drivers
- Industrial and automotive production: Cars, appliances and factory equipment each use embedded controllers, so production in those markets drives revenue by end market.
- Connected device growth: More devices added to networks use controllers with connectivity, expanding the unit base and design-win opportunities.
- Inventory cycles: Distributors and customers adjust stock levels, so shipments can differ from end use; watch distributor inventory and book-to-bill.
- Capacity and pricing: Plant capacity and price changes set supply availability and margin, affecting capacity utilization and gross margin.
Major Risks
- Inventory corrections: Customers and distributors with excess stock cut orders, so sales can fall below true demand; watch distributor inventory and book-to-bill.
- Competition from Chinese suppliers: Local suppliers selling lower-priced controllers pressure price and share, especially in consumer and industrial lines; watch gross margin and design wins.
- Cyclicality: Orders follow device and vehicle output, so downturns cut revenue quickly; watch revenue by end market and order trends.
- Capacity: Too little capacity limits shipments in upturns while too much leaves fixed costs idle in downturns; watch utilization, capital spending and gross margin.
Industry Characteristics
| Characteristic | Profile |
|---|---|
| Cyclicality | Cyclical |
| Capital Intensity | Medium |
| Regulatory Intensity | Low |
| Industry Maturity | Mature |
| Geographic Importance | Global |
Microcontrollers Filers in the SEC Record
60 companies with annual reports in the dataset are classified by the SEC in the Standard Industrial Classification code 3674. Their latest fiscal years end between 2025 and 2026, and together they reported $542.8 billion of revenue. Median revenue growth over the prior year was 20.3%. Median operating margin was -2.3% and median net margin -1.7%. Median total liabilities were 34% of total assets, and 27 of 60 reported a profit in their latest year.
| Company | Revenue | Growth | Operating margin | Net margin | Year |
|---|---|---|---|---|---|
| Nvidia Corp | $215.9 billion | 65.5% | 60.4% | 55.6% | FY 2026 |
| Broadcom Inc. | $63.9 billion | 23.9% | 39.9% | 36.2% | FY 2025 |
| Intel Corp | $52.9 billion | -0.5% | -4.2% | -0.5% | FY 2025 |
| Micron Technology Inc | $37.4 billion | 48.9% | 26.1% | 22.8% | FY 2025 |
| Advanced Micro Devices Inc | $34.6 billion | 34.3% | 10.7% | 12.5% | FY 2025 |
| Applied Materials Inc | $28.4 billion | 4.4% | 29.2% | 24.7% | FY 2025 |
| Texas Instruments Inc | $17.7 billion | 13.0% | 34.1% | 28.3% | FY 2025 |
| Nxp Semiconductors N.V. | $12.3 billion | -2.7% | 24.8% | 16.5% | FY 2025 |
The 8 largest of 60 by revenue. Source: each company's own annual report as filed with the SEC (XBRL data), figures in U.S. dollars. A company's SIC code reflects its main business as the SEC records it, so it can differ from how an index provider or analyst classifies the company, and a diversified group appears under only one code.
Where to Go Next
The Microcontrollers guide describes how the industry earns money, what to measure and what can go wrong. To see how it compares, read the neighbouring industries in the same sector, then apply the same checks to a specific company.
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Frequently Asked Questions
What are the main KPIs for the Microcontrollers industry?
Key performance indicators for the Microcontrollers industry include: Revenue by end market, Design wins, Gross margin, Inventory at distributors, Capacity. Which matter most depends on the company's model, so compare them across several companies rather than relying on one.
How cyclical is the Microcontrollers industry?
The Microcontrollers industry is cyclical, meaning its revenues and earnings tend to expand during economic expansions and contract during downturns. Investors should monitor leading economic indicators and interest rate trends when evaluating timing.
What are the biggest risks in the Microcontrollers industry?
The primary risks for Microcontrollers companies include: Inventory corrections, Competition from Chinese suppliers, Cyclicality, Capacity. Investors should assess each company's exposure to these factors and its track record of navigating them.