Microchip announced the launch of its LAN866x family of 10BASE‑T1S endpoint devices with Remote Control Protocol (RCP) on November 12 2025. The endpoints are software‑less bridges that translate Ethernet packets directly to local digital interfaces, eliminating the need for node‑specific software programming. They support a 10BASE‑T1S multidrop topology that enables an all‑Ethernet, single‑pair network, reducing cabling, software integration, and physical footprint.
The launch expands Microchip’s Single Pair Ethernet portfolio and positions the company to capture revenue from the growing software‑defined vehicle market. It aligns with the automotive zonal architecture trend, which consolidates electronic control units into zones and simplifies wiring. The RCP support allows centralized control of edge nodes, improving data streaming and device management across the vehicle.
In the most recent quarter, Microchip reported net sales of $1.14 billion, a 6% sequential increase from $1.08 billion in the prior quarter and an 11% rise from $1.026 billion in the same quarter of the previous fiscal year. Operating margin fell to 7.8% from 12.6% year‑over‑year, while non‑GAAP gross margin was 56.7% versus 59.5% last year. The company cited ongoing inventory correction and a slower‑than‑anticipated market recovery as headwinds.
Management guided revenue for the next quarter to $1.109 billion–$1.149 billion, below the consensus estimate of $1.18 billion, and adjusted EPS to $0.34–$0.40, also below analyst expectations of $0.39. CEO Steve Sanghi said the company was maintaining momentum in its recovery and that operational improvements were translating into meaningful financial progress, but acknowledged inventory pressures. The guidance miss signals caution about near‑term demand, even as the company continues to invest in high‑margin automotive and industrial segments.
Investors reacted to the guidance miss and inventory concerns, tempering enthusiasm for the product launch. While the launch is a significant milestone, the broader financial picture and headwinds have moderated the market’s response.
The LAN866x launch represents a key step in Microchip’s strategy to deliver end‑to‑end automotive networking solutions, but the company’s recent earnings and guidance highlight the challenges of scaling in a market still adjusting to supply‑chain constraints and macro‑economic headwinds.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.