Microsemi, Analog Devices Team Up For SiC MOSFET Drivers

Microsemi Corporation (NASDAQ:MSCC) and Analog Devices, Inc. (NASDAQ:ADI) have teamed up for scalable Silicon Carbide (SiC) driver reference design solution.

The new product is based on a range of Microsemi SiC MOSFET products and Analog Devices' ADuM4135 5KV isolated gate driver. Microsemi claimed that with the new SiC driver solution, customers can now choose the best driver and components and can also scale to their particular MOSFET requirements.

Microsemi’s Accelerate Ecosystem to Strengthen

The program includes leading silicon, intellectual property (IP), software, systems and design experts collaborate on technology, sales and marketing efforts. The program aims at decreasing time to market for end customers and time to revenue for ecosystem participants.

Microsemi Corporation Net Income (Quarterly)

We believe that participation and contribution from Analog Devices to this ecosystem would enable easier access for Microsemi customers by speeding up time to market. In addition, it could boost Microsemi’s efforts to improve product mix and operational efficiency.

We believe strategic positioning, strong fundamentals and efficient execution have been helping Microsemi outperform the Semiconductor - Analog and Mixed industry. Over the last year, while the stock rallied 48.9%, the industry gained 39%.

As far as Analog Devices is concerned, we believe placing one of its isolated gate drivers in the new design solution is part of its efforts to boost the Power Management & Reference product category.

Notably, the new product is suitable for a range of end markets such as defense, aerospace, industrial automotive and medical. As both the companies serve common markets such as industrial and automotive, the new move looks like a joint effort to serve the respective markets.

Strong Growth Expected in SiC Market

According to research firm Yole Développement, the SiC power market is anticipated to witness compound annual growth rate of 19% and cross the $550 million mark in 2021.

The strong growth projection should be encouraging for the likes of Microsemi. With the future of SiC power market looking promising, we believe Microsemi is well positioned to take advantage of this trend.

Zacks Rank & Stocks to Consider

Currently, Microsemi has a Zacks Rank #3 (Hold). Stocks in the broader technology sector worth considering include Monolithic Power Systems, Inc. (NASDAQ:MPWR) and Maxim Integrated Products, Inc. (NASDAQ:MXIM) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Long-term expected earnings per share growth rates for Monolithic Power and Maxim Integrated Products are 17%, and 10.3%, respectively.

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