# Ep. 26 | Microchip's Steve Sanghi on How to Bring a Company from Debt to Billions

- Show: [Moore's Lobby](https://hardwarepodcasts.com/podcast/moores-lobby)
- Published: 2021-06-08
- Length: 37m
- Episode: 11
- Page: https://hardwarepodcasts.com/podcast/moores-lobby/2021-06-08-ep-26-microchips-steve-sanghi-on-how-to-bring-a-company-from-debt-to-billions
- Listen: https://www.allaboutcircuits.com/podcast/ep-26-microchip-steve-sanghi-on-how-to-bring-a-company-from-debt-to-billions

## Summary

Steve Sanghi, Executive Chairman and former CEO of Microchip Technology, recounts how he took over the company in 1990 when it was on the verge of bankruptcy, transforming it into a $43 billion enterprise. He details the strategic pivot to field-programmable microcontrollers using EPROM technology, which allowed for zero lead times and eliminated the scrap costs associated with ROM-based parts. Sanghi emphasizes Microchip's 'different-by-design' culture, including a strict policy of promoting from within and heavy investment in employee training, which contributed to 121 consecutive profitable quarters.

## Chapters

- [0:01](https://hardwarepodcasts.com/podcast/moores-lobby/2021-06-08-ep-26-microchips-steve-sanghi-on-how-to-bring-a-company-from-debt-to-billions#t=1) Introduction: Steve Sanghi and Microchip's Bankruptcy Origins
- [2:21](https://hardwarepodcasts.com/podcast/moores-lobby/2021-06-08-ep-26-microchips-steve-sanghi-on-how-to-bring-a-company-from-debt-to-billions#t=141) Sanghi's Immigrant Journey and Early Career at Intel
- [6:52](https://hardwarepodcasts.com/podcast/moores-lobby/2021-06-08-ep-26-microchips-steve-sanghi-on-how-to-bring-a-company-from-debt-to-billions#t=412) Taking the CEO Role at a Company Seeking a Replacement
- [14:35](https://hardwarepodcasts.com/podcast/moores-lobby/2021-06-08-ep-26-microchips-steve-sanghi-on-how-to-bring-a-company-from-debt-to-billions#t=875) Surviving Cash Flow Crisis and Raising Capital from Kleiner Perkins
- [22:14](https://hardwarepodcasts.com/podcast/moores-lobby/2021-06-08-ep-26-microchips-steve-sanghi-on-how-to-bring-a-company-from-debt-to-billions#t=1334) Improving Manufacturing Yields and Going Public in 1993
- [25:51](https://hardwarepodcasts.com/podcast/moores-lobby/2021-06-08-ep-26-microchips-steve-sanghi-on-how-to-bring-a-company-from-debt-to-billions#t=1551) Pioneering Field-Programmable Microcontrollers and Distribution Strategy
- [32:42](https://hardwarepodcasts.com/podcast/moores-lobby/2021-06-08-ep-26-microchips-steve-sanghi-on-how-to-bring-a-company-from-debt-to-billions#t=1962) Building Culture Through Internal Promotion and Training

## Topics

- [Starting a product company](https://hardwarepodcasts.com/topic/starting-a-company)
- [Microcontrollers & dev platforms](https://hardwarepodcasts.com/topic/microcontrollers-and-platforms)
- [Leadership, teams & culture](https://hardwarepodcasts.com/topic/leadership-and-culture)
- [Scaling production](https://hardwarepodcasts.com/topic/scaling-production)
- [Pricing, margins & unit economics](https://hardwarepodcasts.com/topic/pricing-and-unit-economics)

## Most relevant to

early-stage companies, companies scaling up

## Mentioned

- Microchip Technology (company)
- General Instrument (company)
- Intel (company)
- WaferScale (company)
- Windbond (company)
- Kleiner Perkins (company)
- Citibank (company)
- Motorola (company)
- ST Micro (company)
- Samsung (company)
- field-programmable microcontrollers (product)
- EPROM (chip)
- PIC architecture (product)
- 8751 (product)

## Related episodes from other shows

- [Steve Sanghi - Microchip CEO for 31 Years!](https://hardwarepodcasts.com/podcast/the-amp-hour/2023-05-15-steve-sanghi-microchip-ceo-for-31-years) (The Amp Hour)
- [An Interview with John Day](https://hardwarepodcasts.com/podcast/the-amp-hour/2020-03-22-an-interview-with-john-day) (The Amp Hour)
- [NVIDIA: Jensen Huang. From near collapse to becoming the world’s biggest company](https://hardwarepodcasts.com/podcast/how-i-built-this/2026-05-18-nvidia-jensen-huang-from-near-collapse-to-becoming-the-worlds-biggest-company) (How I Built This)
- [No More Naming](https://hardwarepodcasts.com/podcast/the-amp-hour/2015-07-23-no-more-naming) (The Amp Hour)
- [An Interview with Clint Cole of Digilent](https://hardwarepodcasts.com/podcast/the-amp-hour/2016-06-10-an-interview-with-clint-cole-of-digilent) (The Amp Hour)

## Citing this page

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