<SEC-DOCUMENT>0001214659-23-009946.txt : 20230725
<SEC-HEADER>0001214659-23-009946.hdr.sgml : 20230725
<ACCEPTANCE-DATETIME>20230725140110
ACCESSION NUMBER:		0001214659-23-009946
CONFORMED SUBMISSION TYPE:	PX14A6G
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20230725
DATE AS OF CHANGE:		20230725
EFFECTIVENESS DATE:		20230725

SUBJECT COMPANY:	

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			MICROCHIP TECHNOLOGY INC
		CENTRAL INDEX KEY:			0000827054
		STANDARD INDUSTRIAL CLASSIFICATION:	SEMICONDUCTORS & RELATED DEVICES [3674]
		IRS NUMBER:				860629024
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			0331

	FILING VALUES:
		FORM TYPE:		PX14A6G
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-21184
		FILM NUMBER:		231107974

	BUSINESS ADDRESS:	
		STREET 1:		2355 W CHANDLER BLVD
		CITY:			CHANDLER
		STATE:			AZ
		ZIP:			85224-6199
		BUSINESS PHONE:		480-792-7200

	MAIL ADDRESS:	
		STREET 1:		2355 WEST CHANDLER BLVD
		CITY:			CHANDLER
		STATE:			AZ
		ZIP:			85224-6199

FILED BY:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			Presbyterian Church (U.S.A.), A Corp
		CENTRAL INDEX KEY:			0001975516
		IRS NUMBER:				133462549
		STATE OF INCORPORATION:			PA
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		PX14A6G

	BUSINESS ADDRESS:	
		STREET 1:		100 WITHERSPOON ST.
		CITY:			LOUISVILLE
		STATE:			KY
		ZIP:			40202
		BUSINESS PHONE:		502-569-5000

	MAIL ADDRESS:	
		STREET 1:		100 WITHERSPOON ST.
		CITY:			LOUISVILLE
		STATE:			KY
		ZIP:			40202
</SEC-HEADER>
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<TYPE>PX14A6G
<SEQUENCE>1
<FILENAME>j725230px14a6g.htm
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<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 4.5pt 0pt 0; text-align: center"><B>Notice of Exempt Solicitation</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 4.3pt 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 4.3pt 0pt 0"><B>Name of Registrant:</B> Microchip Technology Incorporated
Shareholders</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 4.3pt 0pt 0"><B>Name of Person relying on exemption: </B>Rob Fohr, Presbyterian
Church, U.S.A.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 4.3pt 0pt 0"><B>Address of Person relying on exemption: </B>100 Witherspoon
St, Louisville, KY 40202</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 4.3pt 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 4.3pt 0pt 0; text-align: justify"><B>Written materials are submitted pursuant
to Rule 14(a)-6(g)(1) promulgated under the Securities and Exchange Act of 1934.&#9;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="background-color: white">Dear Fellow Microchip Shareholder,
</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="background-color: white">The Presbyterian Foundation filed
Proxy Item No. 7 on Microchip Technology Incorporated&rsquo;s (&ldquo;Microchip&rsquo;s&rdquo; or the &ldquo;Company&rsquo;s&rdquo;) proxy
card, &ldquo;Stockholder proposal requesting that our board of directors commission an independent third-party report, at reasonable expense
and excluding proprietary information, on our due diligence process to determine whether our customers&rsquo; use of our products contribute
or are linked to violations of international law&rdquo; (the &ldquo;Proposal&rdquo;). The proposal will be voted on at the August 22nd
Annual Meeting of Microchip.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Rationale for a FOR Vote:</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">1.</TD><TD>Microchip&rsquo;s components and operations may be connected to end-users&rsquo; violations of international law in conflict-affected
and high-risk areas (CAHRA), creating potential financially material risks &ndash; ethical, regulatory, and reputational &ndash; for shareholders.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">2.</TD><TD>Presently available information regarding Microchip&rsquo;s policies and procedures for Know Your Customer (KYC) due diligence, heightened
human rights due diligence (hHRDD), and export and sanction controls is insufficient.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">3.</TD><TD>The proposal does not request complete traceability but seeks to understand Microchip&rsquo;s policies and procedures for the company&rsquo;s
KYC due diligence, hHRDD, and export and sanction controls.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">4.</TD><TD>Microchip&rsquo;s efforts to address human rights- and conflict-related risks in its value chain lag behind industry peers.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">5.</TD><TD>The proposal&rsquo;s requests will protect the interests of Microchip&rsquo;s shareholders.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>The Proposal</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Resolved: </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.5in; text-align: justify">Shareholders request that the Board of Directors
commission an independent third-party report, at reasonable expense and excluding proprietary information, on Microchip&rsquo;s due diligence
process to determine whether its customers' use of its products contribute or are linked to violations of international law.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The proposal requests an independent third-party report regarding Microchip&rsquo;s
due diligence in order to protect investors&rsquo; long-term interests. Microchip&rsquo;s policies and procedures for Know Your Customer
(KYC) due diligence, heightened human rights due diligence (hHRDD) for conflict-affected and high-risk areas (CAHRA), and sanctions and
export controls may not be sufficient to prevent Microchip&rsquo;s products from being connected to violations of U.S. regulatory regimes
and international law. Furthermore, publicly available information regarding these procedures is inadequate and the proposal&rsquo;s requests
are not overly burdensome, do not call for complete traceability and 100% prevention or misuse, nor are they disproportionate based on
the present and increasing risks.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B></B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Microchip&rsquo;s components and operations
may be connected to end-users&rsquo; violations of international law in conflict-affected and high-risk areas (CAHRA), creating potential
financially material risks &ndash; ethical, regulatory, and reputational &ndash; for shareholders.<BR>
<BR>
</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Microchip&rsquo;s commercial, dual-use, and military components have
been implicated in military systems deployed in CAHRA, some of which have been connected to violations of international humanitarian law
(IHL). Under U.S. export regulations, Microchip is restricted from selling its components to <FONT STYLE="background-color: white">prohibited
end-users or for a prohibited end-use, which includes embargoed countries, certain military actors, and types of military-use.<SUP>1</SUP></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="background-color: white">According to the Royal United
Services Institute&rsquo;s (RUSI) Report, <I>Silicon Lifeline: Western Electronics at the Heart of Russia&rsquo;s War Machine</I>, Microchip&rsquo;s
products were among the most prevalent in the 208 dual-use components recovered from 26 Russian weapons systems, including the Iskander
9M727 and the KH-101 ballistic and cruise missile systems.<SUP>2</SUP> Investigations also found Microchip&rsquo;s products in other
weapons systems recovered from the Ukrainian battlefield, including Russian and Iranian drones,<SUP>3</SUP> Russian T-72 tanks,<SUP>4
</SUP>and the Orlan-10 drone.<SUP>5</SUP> Several types of these drones have been used by the Russian military to target Ukrainian civilians
and civilian infrastructure in violation of IHL.<SUP>6</SUP> Furthermore, the human costs of the use of Russian and Iranian weapons systems
have been widespread and severe with the Ukrainian government currently investigating over 70,000 crimes of aggression and war crimes.<SUP>7
</SUP>These findings have been reported in an array of mainstream media organizations, including <I>Wall Street Journal</I>, <I>Financial
Times</I>, <I>The New York Times</I>, <I>The Washington Post</I>, and CNN, creating an expanding environment of reputational risk for
the company. </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="background-color: white">_____________________________</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="background-color: white"><SUP>1</SUP></FONT> Code of Federal
Regulations (CFR) Part 744.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="background-color: white"><SUP>2</SUP></FONT> <FONT STYLE="font-size: 10pt">James
Byrne, Gary Somerville, Joseph Byrne, Jack Watling, Nick Reynolds, and Jane Baker, &ldquo;Silicon Lifeline: Western Electronics at the
Heart of Russia's War Machine,&rdquo; <FONT STYLE="background-color: white"><I>Royal United Services Institute</I></FONT>, August 2022,
<FONT STYLE="color: #1155CC"><U>https://static.rusi.org/RUSI-Silicon-Lifeline-final-updated-web_1.pdf</U></FONT> (accessed June 20, 2023).</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><FONT STYLE="background-color: white"><SUP>3</SUP>
<FONT STYLE="font-size: 10pt">Dave Ross, &ldquo;Ross: Drones used in Ukraine invasion use western chips,&rdquo; <I>Kiro News Radio</I>,
January 5, 2023,</FONT></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: #1155CC; background-color: white"><U>https://mynorthwest.com/3769594/ross-drones-used-in-ukraine-invasion-use-western-chips/</U></FONT>
<FONT STYLE="background-color: white">(accessed June 20, 2023). </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="background-color: white"><SUP>4</SUP> <FONT STYLE="font-size: 10pt">Anton
Mykytiuk, &ldquo;How foreign microchips end up in Russian tanks despite sanctions,&rdquo; <I>Euromaidan Press</I>, September 28, 2022,
<FONT STYLE="color: #1155CC"><U>https://euromaidanpress.com/2022/09/28/how-foreign-microchips-end-up-in-russian-tanks-despite-sanctions/</U></FONT>
(accessed June 20, 2023). </FONT></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="background-color: white"><SUP>5</SUP> <FONT STYLE="font-size: 10pt">Maria
Zholobova, Stephen Gray, and Maurice Tamman, &ldquo;The West has banned the sale of components for the production of weapons to Russia.
But she successfully buys them,&rdquo; <I>The Independent</I>, December 15, 2022, <FONT STYLE="color: #1155CC"><U>https://storage.googleapis.com/istories/stories/2022/12/15/zapad-zapretil-prodavat-rossii-komplektuyushchie-dlya-proizvodstva-oruzhiya-no-ona-ikh-uspeshno-pokupaet/index.html</U></FONT>
(accessed June 20, 2023). </FONT></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="background-color: white"><SUP>6</SUP> <FONT STYLE="font-size: 10pt">Alisha
Rahaman Sarkar, &ldquo;US claims Iran-made &lsquo;kamikaze&rsquo; drones used by Russia to bomb Ukraine breach international law,&rdquo;
<I>The Independent</I>, October 18, 2022, <FONT STYLE="color: #1155CC"><U>https://www.independent.co.uk/news/world/americas/us-kamikaze-drone-ukraine-russia-b2204841.html</U></FONT>
(accessed June 20, 2023). </FONT></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="background-color: white"><SUP>7</SUP></FONT> <FONT STYLE="font-size: 10pt; color: #202124">&Ocy;&fcy;&iukcy;&tscy;&iukcy;&jcy;&ncy;&icy;&jcy;
&tcy;&vcy;&iukcy;&tcy;&tcy;&iecy;&rcy; &Ocy;&fcy;&iukcy;&scy;&ucy; &Gcy;&iecy;&ncy;&iecy;&rcy;&acy;&lcy;&softcy;&ncy;&ocy;&gcy;&ocy; &pcy;&rcy;&ocy;&kcy;&ucy;&rcy;&ocy;&rcy;&acy;
/ Prosecutor General's Office of Ukraine, Official Twitter [@GP_Ukraine] (2023, February 24) #RussianWarCrimes statistics for the past
week: February 17 - 24, 2023. 1 141 new crimes registered. At least 461 children killed, 927 injured (the data without full consideration
of places of active hostilities) [Tweet]. Twitter.</FONT> <FONT STYLE="font-size: 10pt; color: #1155CC">https://twitter.com/GP_Ukraine/status/1629144987207184384</FONT>
<FONT STYLE="font-size: 10pt; color: #202124">(accessed June 20, 2023).</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt; color: #202124">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt; color: #202124"></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="background-color: white">In its <I>Opposition Statement</I>,
Microchip highlights how semiconductor components found in military weapons could have been taken from commercial devices, transferred
through multiple parties, or significantly dated. While this is an accurate depiction of the challenges in maintaining effective compliance
procedures in this industry, missile systems found in Ukraine included Microchip components classified as dual-use and manufactured in
the summer and fall of 2022.<SUP>8</SUP> This finding indicates western components may still be being diverted to Russian entities despite
sanctions<SUP>9</SUP>, as reaffirmed in the July 21 segment on <I>PBS News Hour, </I>&ldquo;Parts made by U.S. companies used to build
Russian cruise missiles.&rdquo;<SUP>10 </SUP></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Presently available information regarding Microchip&rsquo;s
policies and procedures for KYC due diligence, hHRDD, and export and sanction controls is insufficient.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Microchip&rsquo;s <I>Opposition Statement</I> describes how its &ldquo;trade
control policies and procedures address the review of our supply chain, our customers, distributors, and transactions.&rdquo; It further
directs investors to the company website to find more information. Filer acknowledges that o<FONT STYLE="background-color: white">n July
7, 2023, Microchip released a statement<SUP>11</SUP> describing a limited number of the steps and tools used by the company to mitigate
the risks associated with its customers and distributors use of its products. While we recognize this as a positive step towards improved
disclosure, the purpose of the proposal is to analyze the sufficiency of Microchip&rsquo;s policies and procedures. Further, the disclosure&rsquo;s
vague references to a base-line and already legally-required compliance program does not provide sufficient information for shareholders
to determine if Microchip&rsquo;s KYC, hHRDD, and regulatory compliance processes adequately address increased geopolitical conflict,
product diversion by authoritarian regimes, and product misuse in violations of international law. </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Given the recent investigations that have found dozens of Microchip&rsquo;s
unique components in Russian and Iranian weapons systems, ensuring the company&rsquo;s processes are sufficiently robust is essential
to protecting investors&rsquo; interests, especially in light of rapidly evolving regulatory, legal, reputational, and financial risks.<SUP>12</SUP>
Furthermore, this proposal seeks a third-party expert to analyze these policies, procedures, and outcomes as opposed to relying on Microchip&rsquo;s
board, which lacks membership with adequate human rights or conflict risk experience.<SUP>13</SUP></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><BR>
Filer's proposal does not request complete traceability but seeks to understand Microchip&rsquo;s policies and procedures for the company&rsquo;s
KYC due diligence, hHRDD, and export and sanction controls. </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="background-color: white">To support its contention that
the proposal is not in the best interest of investors, Microchip&rsquo;s <I>Opposition Statement</I> argues that complete supply chain
traceability is impossible. In fact, Microchip&rsquo;s statement goes into great detail regarding the complexity of its operations and
industry challenges. </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="background-color: white">_____________________________</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="background-color: white"><SUP>8</SUP> <FONT STYLE="font-size: 10pt">John
Ismay, &ldquo;Russian Cruise Missiles Were Made Just Months Ago Despite Sanctions,&rdquo; <I>New York Times</I>, December 5, 2022, <FONT STYLE="color: #1155CC"><U>https://www.nytimes.com/2022/12/05/us/politics/cruise-missiles-russia-ukraine-sanctions.html</U></FONT>
(accessed June 20, 2023). </FONT></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="background-color: white"><SUP>9</SUP> <FONT STYLE="font-size: 10pt">Anton
Mykytiuk, &ldquo;How foreign microchips end up in Russian tanks despite sanctions,&rdquo; <I>Euromaidan Press</I>, September 28, 2022,
<FONT STYLE="color: #1155CC"><U>https://euromaidanpress.com/2022/09/28/how-foreign-microchips-end-up-in-russian-tanks-despite-sanctions/</U></FONT>
(accessed June 20, 2023). </FONT></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="background-color: white"><SUP>10</SUP></FONT> <FONT STYLE="font-size: 10pt">Simon
Ostrovsky, &ldquo;Parts made by U.S. companies used to build Russian cruise missiles,&rdquo; <I>PBS News Hour</I>, July 21, 2023, https://www.pbs.org/newshour/show/parts-made-by-u-s-companies-used-to-build-russian-cruise-missiles
(accessed July 22, 2023). </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="background-color: white"><SUP>11</SUP></FONT> <FONT STYLE="font-size: 10pt">Microchip,
&ldquo;Position on Russia and Trade Controls,&rdquo; July 7, 2023 <FONT STYLE="color: #1155CC"><U>https://ww1.microchip.com/downloads/aemDocuments/documents/announcements/microchip-position-on-russia-and-trade-controls.pdf</U></FONT>
(accessed July 20, 2023). </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="background-color: white"><SUP>12</SUP> <FONT STYLE="font-size: 10pt">Ibid</FONT></FONT><FONT STYLE="font-size: 10pt">;
&ldquo;American CPUs found in Iran-made Kamikaze drones,&rdquo; <I>Ukrainska Pravda</I>, September 26, 2022, <FONT STYLE="color: #1155CC"><U>https://www.yahoo.com/video/american-cpus-found-iran-made-122325552.html</U></FONT>
(accessed June 20, 2023). </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="background-color: white"><SUP>13</SUP></FONT> <FONT STYLE="font-size: 10pt">Microchip,
&ldquo;Leadership,&rdquo; <FONT STYLE="color: #1155CC"><U>https://www.microchip.com/en-us/about/investors/investor-information/leadership
</U></FONT>(accessed June 20, 2023).</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="background-color: white">However, the proposal does not
request Microchip attempt to achieve </FONT>&ldquo;complete traceability of standard semiconductor products to every end use and 100%
prevention&rdquo; <FONT STYLE="background-color: white">of product misuse. </FONT>Filer recognizes the dual-use nature of semiconductor
components, the industry&rsquo;s reliance on retail markets and third-party distributors, and the long lifespan of chips that makes tracking
the end-users of thousands of different products to over 125,000 customers practically unfeasible. <FONT STYLE="background-color: white">Filer
is instead requesting Microchip take the appropriate steps to ensure its KYC due diligence, hHRDD, and other regulatory compliance are
effective in light of the recent, widespread, and detailed reporting that has directly connected Microchip&rsquo;s components to prohibited
end-users and uses that constitute violations of international law. </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="background-color: white">For example, recent reporting
discovered Microchip has supplied high-risk importers, such as ZAO Radiotekhkomplekt (RTKT), a company with a long history of supplying
the Russian military, with the precise types of semiconductors at risk of prohibited end-user and uses.<SUP>14</SUP> Further, in November
2022, the U.S. Department of Commerce&rsquo;s Bureau of Industry and Security launched an investigation after American components were
found in downed Iranian drones, including products from Microchip.<SUP>15</SUP> Iranian Shahed-136 &ldquo;kamikaze&rdquo; and other drones
have been used by the Russian military to target Ukrainian civilians and civilian infrastructure in violation of international law.<SUP>16</SUP>
The fact that non-profit organizations with far fewer resources, such as RUSI, are able to trace dual-use Microchip semiconductors from
point of manufacture to point of end use suggests that the company can and should do more regarding the chain of custody of its products.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Microchip&rsquo;s efforts to address human rights-
and conflict-related risks </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>in its value chain lag behind industry peers</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">While Microchip&rsquo;s website includes references to human rights
considerations, such as a human rights policy, its peers in the semiconductor industry are taking proactive steps to better integrate
human rights due diligence across organizational departments.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">For example, Qualcomm, a similarly situated American semiconductor
company, has implemented a <FONT STYLE="background-color: white">Human Rights Working Group that is &ldquo;composed of representatives
from legal; procurement; corporate responsibility; government affairs; environmental, health and safety; diversity and inclusion; supply
chain; ethics and compliance; and privacy and security.&rdquo; The working group reports regularly to senior management and the Board
of Directors, indicating that human rights is considered a governance priority. Further, the company notes that it regularly conducts,
&ldquo;human rights impact assessments, including company-wide and within certain regions,&rdquo; and materiality assessments that identified
&ldquo;product misuse&rdquo; as a salient human rights risk. </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="background-color: white">_____________________________</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="background-color: white"><SUP>14</SUP></FONT> <FONT STYLE="font-size: 10pt">James
Byrne, Gary Somerville, Joseph Byrne, Jack Watling, Nick Reynolds, and Jane Baker, &ldquo;Silicon Lifeline: Western Electronics at the
Heart of Russia's War Machine,&rdquo; <FONT STYLE="background-color: white"><I>Royal United Services Institute</I></FONT>, August 2022,
<FONT STYLE="color: #1155CC"><U>https://static.rusi.org/RUSI-Silicon-Lifeline-final-updated-web_1.pdf</U></FONT> (accessed June 20, 2023).</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="background-color: white"><SUP>15</SUP> <FONT STYLE="font-size: 10pt">Inder
Singh Bisht, &ldquo;US Orders Probe After Western Components Found in Iranian Drones: Report,&rdquo; <I>The Defense Post</I>, November
17, 2022, <FONT STYLE="color: #1155CC"><U>https://www.thedefensepost.com/2022/11/17/western-components-iranian-drones/</U></FONT> (accessed
June 20, 2023).</FONT></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="background-color: white"><SUP>16</SUP> <FONT STYLE="font-size: 10pt">Alisha
Rahaman Sarkar, &ldquo;US claims Iran-made &lsquo;kamikaze&rsquo; drones used by Russia to bomb Ukraine breach international law,&rdquo;
<I>The Independent</I>, October 18, 2022, <FONT STYLE="color: #1155CC"><U>https://www.independent.co.uk/news/world/americas/us-kamikaze-drone-ukraine-russia-b2204841.html</U></FONT>
(accessed June 20, 2023).</FONT></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt; background-color: white">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt; background-color: white"></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="background-color: white">Similarly, Intel, another leader
in the American semiconductor space, has multiple teams, including a cross functional human rights steering committee, that are responsible
for conducting due diligence and implementing policies and procedures to address salient human rights risks and support adherence to its
human rights policy. Under &ldquo;Product Responsibility,&rdquo; Intel notes that, &ldquo;Where we become aware of a concern that Intel
products are being used by a business partner in connection with abuses of human rights, we will restrict or cease business with the third
party until and unless we have high confidence that Intel&rsquo;s products are not being used to violate human rights.&rdquo; </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="background-color: white">The limited information Microchip
has disclosed regarding its human rights practices indicates Microchip has not prioritized human rights and/or conflict related risks
to the same extent as its peers and may be falling behind industry standards. </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="background-color: white">In Microchip&rsquo;s <I>Opposition
Statement</I>, the company further argues that disclosing the information requested by the Proposal will further facilitate bad actors
in circumventing Microchip&rsquo;s compliance measures. However, Filers are not requesting Microchip disclose the complete contours of
its compliance systems so as to put the company at risk of greater proximity to prohibited end uses, users, or violations of international
law. To this point, Microchip&rsquo;s industry peers have provided robust disclosures of its human rights and other compliance practices
without indicating a negative outcome. </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>The proposal&rsquo;s requests will protect the
interests of Microchip&rsquo;s shareholders. </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Filer believes understanding Microchip&rsquo;s proximity to human rights
and conflict-related risk is material to protecting the value of their assets as more evidence regarding the financial impact of proximity
to human rights abuses and violations of international law becomes available. Furthermore, Filers are not alone in prioritizing these
issues. Investors representing over $11 trillion assets under management signed public statements concerning these risks in Ukraine,<SUP>17</SUP>
Myanmar,<SUP>18</SUP> and Xinjiang Autonomous Region, China.<SUP>19</SUP> Similarly, &ldquo;conflict risk<FONT STYLE="background-color: white">&rdquo;
is now the second leading environmental, social, and governance (ESG) criteria among institutional investors, according to The Forum for
Sustainable and Responsible Investment&rsquo;s 2022 Rep<I>ort&nbsp;on&nbsp;US&nbsp;Sustainable, Responsible and Impact Investing&nbsp;Trends.<SUP>20</SUP></I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Finally, as opposed to Microchip&rsquo;s contention in its <I>Opposition
Statement</I>, the proposal does not seek to micromanage the company&rsquo;s business or impose an unproductive administrative burden
as it seeks non-proprietary information at a reasonable expense. In fact, the proposal specifically seeks a third-party to conduct the
review and draft the report in an effort to obtain an expert opinion and will therefore require limited resources from company management.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>_____________________________</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>17</SUP> <FONT STYLE="font-size: 10pt">&ldquo;Investor Statement
on the Crisis in Ukraine,&rdquo; Business &amp; Human Rights Resource Centre, May 16, 2022, <FONT STYLE="color: #1155CC"><U>https://media.business-humanrights.org/media/documents/Investor_Statement_on_the_Crisis_in_Ukraine_16_May_2022.pdf</U></FONT>
(accessed June 20, 2023). </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>18</SUP> <FONT STYLE="font-size: 10pt">&ldquo;Investor Statement
on Human Rights and Business Activities in Myanmar,&rdquo; Business &amp; Human Rights Resource Centre, June 9, 2021, <FONT STYLE="color: #1155CC"><U>https://www.business-humanrights.org/en/latest-news/investor-statement-on-human-rights-and-business-activities-in-myanmar/</U></FONT>
(accessed June 20, 2023).</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>19</SUP> <FONT STYLE="font-size: 10pt">&ldquo;Investor Expectations
on Human Rights Crisis in the Xinjiang Uyghur Autonomous Region,&rdquo; <I>Investor Alliance for Human Rights</I>, April 2022, <FONT STYLE="color: #1155CC"><U>https://investorsforhumanrights.org/sites/default/files/attachments/2022-04/XUAR%20Investor%20Expectations%20Statement%20-%20April%202022.pdf</U></FONT>
(accessed June 20, 2023). </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>20</SUP> <FONT STYLE="font-size: 10pt">&ldquo;<FONT STYLE="background-color: white">Report
on US Sustainable, Responsible and Impact Investing Trends,&rdquo; </FONT><I>US SIF Foundation</I>, <FONT STYLE="background-color: white">2022,
</FONT><FONT STYLE="color: #1155CC"><U>https://www.ussif.org//Files/Trends/2022/Institutional%20Investors%202022.pdf</U></FONT>, (accessed
on June 20, 2023).</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt"></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>THE FOREGOING INFORMATION MAY BE DISSEMINATED
TO SHAREHOLDERS VIA TELEPHONE, U.S. MAIL, EMAIL, CERTAIN WEBSITES AND CERTAIN SOCIAL MEDIA VENUES, AND SHOULD NOT BE CONSTRUED AS INVESTMENT
ADVICE OR AS A SOLICITATION OF AUTHORITY TO VOTE YOUR PROXY. THE COST OF DISSEMINATING THE FOREGOING INFORMATION TO SHAREHOLDERS IS BEING
BORNE ENTIRELY BY ONE OR MORE OF THE CO-FILERS. PROXY CARDS WILL NOT BE ACCEPTED BY ANY CO-FILER. PLEASE DO NOT SEND YOUR PROXY TO ANY
CO-FILER. TO VOTE YOUR PROXY, PLEASE FOLLOW THE INSTRUCTIONS ON YOUR PROXY CARD. </B></P>

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