<SEC-DOCUMENT>0001214659-24-012458.txt : 20240716
<SEC-HEADER>0001214659-24-012458.hdr.sgml : 20240716
<ACCEPTANCE-DATETIME>20240716111556
ACCESSION NUMBER:		0001214659-24-012458
CONFORMED SUBMISSION TYPE:	PX14A6G
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20240716
DATE AS OF CHANGE:		20240716
EFFECTIVENESS DATE:		20240716

SUBJECT COMPANY:	

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			MICROCHIP TECHNOLOGY INC
		CENTRAL INDEX KEY:			0000827054
		STANDARD INDUSTRIAL CLASSIFICATION:	SEMICONDUCTORS & RELATED DEVICES [3674]
		ORGANIZATION NAME:           	04 Manufacturing
		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:		241118950

	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
		ORGANIZATION NAME:           	
		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>
<DOCUMENT>
<TYPE>PX14A6G
<SEQUENCE>1
<FILENAME>p715240px14a6g.htm
<TEXT>
<HTML>
<HEAD>
     <TITLE></TITLE>
</HEAD>
<BODY STYLE="font: 10pt Times New Roman, Times, Serif">

<P STYLE="margin: 0"></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 4.3pt 0pt 0; text-align: justify"><B>&nbsp;</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"></TD><TD STYLE="width: 0.75in"><B>To:</B></TD><TD STYLE="padding-right: 4.3pt">Microchip Technology Incorporated 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"></TD><TD STYLE="width: 0.75in"><B>Subject:</B></TD><TD STYLE="padding-right: 4.3pt">2024 Proxy Statement &ndash; Proposal Five: Independent Third-Party Report on Due Diligence Process to
Determine Whether Customers&rsquo; Use of Products Contribute or are Linked to Violations of International Law</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"></TD><TD STYLE="width: 0.75in"><B>Date:</B></TD><TD STYLE="padding-right: 4.3pt">July 16, 2024</TD></TR></TABLE>

<DIV STYLE="margin-right: 4.3pt; margin-left: 0in; padding: 0in 0in 1pt; border-bottom: black 0.5pt solid">

<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"></TD><TD STYLE="width: 0.75in"><B>Contact:</B></TD><TD>Katie Carter, Director of Faith-Based Investing and Shareholder Engagement, Katie.Carter@pcusa.org</TD></TR></TABLE>

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

</DIV>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="background-color: white">The Presbyterian Church (U.S.A.)
filed Proxy Item No. 5<I>.</I> The proposal will be voted on at the </FONT>August 20, 2024<FONT STYLE="background-color: white">, Annual
Meeting of Microchip Technology Incorporated (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>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"><FONT STYLE="background-color: white">Shareholders request that
the Board of Directors commission an independent third-party report, at reasonable expense and excluding proprietary information, on Microchip
Technology Corporation&rsquo;s (Microchip) due diligence process to determine whether its customers&rsquo; use of its products contribute
or are linked to violations of international humanitarian law (IHL).</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">Commissioning an independent third-party report regarding Microchip&rsquo;s
due diligence is in investors&rsquo; long-term best interests. This memorandum summarizes the rationale for shareholder support of the
Proposal and describes how currently available information regarding Microchip&rsquo;s due diligence processes &ndash; Know Your Customer
(KYC), human rights, and regulatory compliance &ndash; is insufficient for shareholders to assess current and future risks resulting from
product misuse by sanctioned entities and other bad actors violating international law, including during the Russian invasion of Ukraine.</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"><B>Summary of Rationale</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</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 expose the company to an increasing number of global conflicts, placing the Company at
risk of contributing or being linked to end-users&rsquo; violations of international law and exposing it to potential human rights, regulatory,
and reputational risks.</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>Publicly available information and disclosures about Microchip&rsquo;s KYC, human rights, and regulatory compliance due diligence
processes are insufficient and not aligned with evolving regulations or 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">3.</TD><TD>Non-governmental organizations (NGOs) have been able to more accurately trace deliveries of Microchip dual-use components for prohibited
use than the company&rsquo;s disclosures indicate; the Company must assess its due diligence processes to prevent and mitigate risks.</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>The Proposal&rsquo;s request for an external report would not micromanage Microchip&rsquo;s internal business operations but would
assess and communicate to fellow shareholders to what extent Microchip&rsquo;s due diligence processes are aligned with evolving industry
practice, rapidly evolving regulations, and the company&rsquo;s own Human Rights Policy<SUP>1</SUP> and Guiding Values<SUP>2</SUP>.</TD></TR></TABLE>

<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>

<!-- Field: Page; Sequence: 1; Options: NewSection -->
    <DIV STYLE="margin-top: 8pt; margin-bottom: 6pt; border-bottom: Black 2px solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"></TD><TD STYLE="width: 33%; text-align: right"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->1<!-- Field: /Sequence --></TD></TR></TABLE></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 8pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%"><TR><TD STYLE="text-align: left; width: 100%"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</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"></TD><TD STYLE="width: 0.25in"><B>1.</B></TD><TD><B>Microchip&rsquo;s components and operations incur proximity to an increasing number of global conflicts, placing the Company at
risk of contributing or being linked to end-users&rsquo; violations of international law and exposing it to potential human rights, regulatory,
and reputational risks.</B></TD></TR></TABLE>

<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">Microchip&rsquo;s commercial and dual-use components are at high risk
for application in military systems used in conflict-affected areas (e.g., Ukraine), especially as product diversion continues to challenge
the semiconductor industry and the demand for military-grade microelectronics increases alongside growing geopolitical conflict.<SUP>3</SUP>
This increase in conflict,<SUP>4</SUP> the growing use of militarized drones and other dual-use systems, and the indispensability of microelectronics
to these systems, has prompted heightened scrutiny and action from an array of stakeholders, including the U.S. Government (USG), members
of Congress, investors, and media.</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 USG continues to expand sanctions related to semiconductor diversion
and misuse, both on Russian individuals and entities and secondary sanctions on resellers in China responsible for diversion to Russia.<SUP>5</SUP>
The USG also included specific mention of the regulatory risks for companies providing dual-use &ldquo;microelectronics used in Russian
and Iranian drones and unmanned aerial vehicles when destined for Russia, Belarus, or Iran&rdquo; in its recent Russia Business Advisory.<SUP>6</SUP>
Further, the U.S. Senate Permanent Subcommittee on Investigations held a hearing earlier this year, focused on the use of U.S. chips in
Russian weapons, during which the panel chair urged that semiconductor companies &ldquo;have the capacity to trace and track those components
well enough to do something more.&rdquo;<SUP>7</SUP></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">Meanwhile, the European Union (EU) passed mandatory human rights due
diligence (HRDD) legislation, including the Corporate Sustainability Reporting Directive (CSRD)<SUP>8</SUP> and Corporate Sustainability
Due Diligence Directive (CSDDD),<SUP>9</SUP> and EU Member States are passing similar legislation including France&rsquo;s Duty of Vigilance
Law, Germany&rsquo;s Supply Chain Law, and Norway&rsquo;s Transparency Act. These pieces of legislation require companies domiciled or
operating in the EU, like Microchip, to conduct and disclose details concerning their HRDD processes beyond the Company&rsquo;s current
practices.&nbsp;&nbsp;</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>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>1</SUP> <FONT STYLE="font-size: 10pt">&ldquo;Human Rights Policy,&rdquo;
Microchip Technology, https://ww1.microchip.com/downloads/aemDocuments/documents/financial/investordocuments/corporate-governance/HR-650-Human-Rights-Policy-2022.12.09.pdf
(accessed July 2, 2024). </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>2</SUP> <FONT STYLE="font-size: 10pt">&ldquo;Mission, Vision,
and Guiding Values,&rdquo; Microchip Technology, https://ww1.microchip.com/downloads/aemDocuments/documents/financial/investordocuments/mission-statement/Mission-Vision-and-Guiding-Values.pdf
(accessed July 2, 2024). </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>3</SUP> <FONT STYLE="font-size: 10pt">Kathryn Ackerman, &ldquo;Large
Investments by Aerospace and Defense Industries in Microelectronics Are the New Normal,&rdquo; Sourceability, February 14, 2024, https://sourceability.com/post/large-investments-by-aerospace-and-defense-industries-in-microelectronics-are-the-new-normal
(accessed July 2, 2024). </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>4</SUP> <FONT STYLE="font-size: 10pt">ACLED Conflict Index, https://acleddata.com/conflict-index/
(accessed July 2, 2024).</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>5</SUP> <FONT STYLE="font-size: 10pt">Josh Wingrove and Daniel
Flatley, &ldquo;US Expands Russia Sanctions to Target LNG Projects, Chips,&rdquo; <I>Bloomberg</I>, June 11, 2024, https://www.bloomberg.com/news/articles/2024-06-11/chip-sales-to-russia-to-be-curbed-under-wider-us-sanctions
(accessed July 2, 2024).</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>6</SUP> <FONT STYLE="font-size: 10pt">&ldquo;Risks and Considerations
for Doing Business in the Russian Federation and Russia-Occupied Territories of Ukraine,&rdquo; United States Department of State, February
23, 2024, https://www.state.gov/russia-business-advisory/ (accessed July 2, 2024). </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>7</SUP> <FONT STYLE="font-size: 10pt">Karen Freifeld, &ldquo;US
Senator urges chipmakers to help keep their chips out of Russian weapons,&rdquo; Reuters, February 27, 2024, https://www.reuters.com/technology/us-chipmakers-should-do-more-keep-chips-out-russian-weapons-senator-says-2024-02-27/
(accessed July 2, 2024).</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>8</SUP> &ldquo;Directive (EU) 2022/2464 of the European Parliament
and of the Council of 14 December 2022,&rdquo; <I>Official Journal of the European Union</I>, https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32022L2464
(accessed July 2, 2024).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>9</SUP> Corporate sustainability due diligence: Council gives
its final approval,&rdquo; Council of the EU, May 24, 2024, https://www.consilium.europa.eu/en/press/press-releases/2024/05/24/corporate-sustainability-due-diligence-council-gives-its-final-approval/
(accessed July 2, 2024).</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>

<!-- Field: Page; Sequence: 2 -->
    <DIV STYLE="margin-top: 8pt; margin-bottom: 6pt; border-bottom: Black 2px solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"></TD><TD STYLE="width: 33%; text-align: right"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->2<!-- Field: /Sequence --></TD></TR></TABLE></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 8pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%"><TR><TD STYLE="text-align: left; width: 100%"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></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">Institutional investors in North America and Europe continue to prioritize
the issue of semiconductor diversion and misuse during conflict while engaging Microchip and a number of its industry peers.<SUP>10</SUP>
Relatedly, media reports continue to highlight the risks associated with Microchip and other companies&rsquo; semiconductors being used
during the Russian invasion two years into the war. This has included coverage of the role China plays as a diversion hub,<SUP>11</SUP>
investigations into how diversion is financing Russian criminal networks,<SUP>12</SUP> and reporting on the ongoing indispensability of
western semiconductors to the Russian war effort,<SUP>13</SUP> most recently in a missile strike on a Ukrainian children&rsquo;s hospital.<SUP>14</SUP></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 Company acknowledges several of the challenges associated with
preventing the use of its commercially available microelectronics by bad actors, noting in its Opposition Statement:</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 0.5in">The challenge of preventing integrated circuit (IC) diversion is
significant. ICs are ubiquitous, durable, small, and can be repurposed, making them susceptible to diversion. Bad actors may evade sanctions
in order to obtain ICs.<SUP>15</SUP></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">In addition, the Opposition Statement addresses the specific concerns
of diversion related to the Russian invasion of Ukraine:</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 0.5in">One analysis of Iranian drones recovered in Ukraine found that
approximately half of the ICs had manufacturing dates in 2020 and 2021 (before Russia&rsquo;s invasion of Ukraine), and certain ICs dated
back to 2005.(3) This means that ICs found in a conflict-affected area may have been purchased long before sanctions or export controls
were imposed, and may have changed hands several times.<SUP>16</SUP></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.5in">&nbsp;</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>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>10</SUP> Gina Gambetta, &ldquo;Big Read: Are investors still holding
corporations to account over Russia ties?&rdquo; <I>Responsible Investor</I>, February 26, 2024, https://www.responsible-investor.com/big-read-are-investors-still-holding-corporates-to-account-over-russia-ties/
(accessed July 2, 2024).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>11</SUP> &ldquo;US Intelligence Finding Shows China Surging Equipment
Sales to Russia to Help War Effort in Ukraine,&rdquo; <I>US News &amp; World Report</I>, April 12, 2024, https://www.usnews.com/news/world/articles/2024-04-12/us-intelligence-finding-shows-china-surging-equipment-sales-to-russia-to-help-war-effort-in-ukraine
(accessed July 2, 2024).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>12</SUP> <FONT STYLE="background-color: white">Vanda Felbab-Brown
and Diana Paz Garc&iacute;a</FONT>, &ldquo;Russia, Ukraine, and organized crime and illicit economies in 2024,&rdquo; Brookings, February
6, 2024,</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">https://www.brookings.edu/articles/russia-ukraine-and-organized-crime-and-illicit-economies-in-2024/
(accessed July 2, 2024).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>13</SUP> Alberto Nardelli, &ldquo;Most of Russia&rsquo;s War Chips
Are Made by US and European Companies,&rdquo; <I>Bloomberg</I>, January 25, 2024,</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">https://www.bloomberg.com/news/articles/2024-01-25/russia-s-war-machine-powered-by-chips-from-intel-amd-infineon-stm
(accessed July 2, 2024).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>14</SUP> Christopher Miller, Max Seddon, Chris Cook, Sam Joiner,
Toru Tsunashima, and Chris Campbell, &ldquo;Type of Russian missile that struck Kyiv children&rsquo;s hospital uses western components,&rdquo;
<I>Financial Times</I>, July 10, 2024, https://www.ft.com/content/ef463ac9-4804-4ad7-b9a2-c113590f2f96 (accessed July 12, 2024).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>15</SUP> &ldquo;2024 Proxy Statement - Company Opposition Statement
to Proposal 5,&rdquo; Microchip Technology, June 25, 2024.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="background-color: white"><SUP>16</SUP></FONT> &ldquo;2024
Proxy Statement - Company Opposition Statement to Proposal 5,&rdquo;Microchip Technology, June 25, 2024.</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>

<!-- Field: Page; Sequence: 3 -->
    <DIV STYLE="margin-top: 8pt; margin-bottom: 6pt; border-bottom: Black 2px solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"></TD><TD STYLE="width: 33%; text-align: right"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->3<!-- Field: /Sequence --></TD></TR></TABLE></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 8pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%"><TR><TD STYLE="text-align: left; width: 100%"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></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 Filers have also acknowledged, including during meetings with Microchip
staff, how the volume of commercial semiconductors on the market, &ldquo;legacy chips,&rdquo; and counterfeiting are significant challenges
to diversion prevention.</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">However, Microchip&rsquo;s reliance on these challenges related to
misuse in conflict-affected areas underscores the limitations of a due diligence process that is primarily focused or solely reliant on
sanctions compliance. Best practices indicate that a compliance-based due diligence process is the legal minimum. While Russia did not
launch a full-scale invasion of Ukraine until February 2022, the Putin regime had been unlawfully occupying Crimea and the Donbass region
in contravention of international law since 2014, creating a heightened level of risk that necessitated a heightened level of due diligence.
In other words, the risks associated with diversion and misuse by Russia did not begin with the full-scale invasion of Ukraine nor with
the imposition of sanctions.</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">Despite Microchip&rsquo;s efforts to limit its exposure to the Russian
market since March 2022, according to research conducted by the Kyiv School of Economics (KSE) and the Yermak-McFaul International Working
Group on Russian Sanctions, Microchip was among the top 15 companies whose &ldquo;battlefield goods&rdquo; &ndash; priority components
identified by the USG, EU, and United Kingdom &ndash; were imported into Russia between January and October of 2023.<SUP>17</SUP></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">Further, the Opposition Statement does not account for the diversion
and misuse of Microchip&rsquo;s dual-use products, including those for military purposes (e.g., &ldquo;precision strike/missile defense,
communications, radar, autonomous systems, joint all-domain command control, image processing&rdquo;<SUP>18</SUP>). A number of these
products are classified under EAR99 U.S. export controls, which imposes &ldquo;a due-diligence obligation to make sure they were not
destined for a prohibited end user, or to be used in prohibited end use.&rdquo;<SUP>19</SUP>&nbsp;</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>17</SUP></FONT> <FONT STYLE="font-size: 10pt">Olena
Bilousova, Benjamin Hilgenstock, Elina Ribakova, Natalia Shapoval, Anna Vlasyuk, and Vladyslav Vlasiuk, &ldquo;Challenges of Export Controls
Enforcement: How Russia Continues to Import Components for its Military Production,&rdquo; Kyiv School of Economics and Yermak-McFaul
International Working Group on Russia Sanctions, January 2024, https://kse.ua/wp-content/uploads/2024/01/Challenges-of-Export-Controls-Enforcement.pdf
(accessed July 2, 2024).</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="background-color: white"><SUP>18</SUP></FONT> <FONT STYLE="font-size: 10pt">&ldquo;Defense
Applications,&rdquo; Microchip Technology, https://www.microchip.com/en-us/solutions/aerospace-and-defense/defense (accessed July 2, 2024).
</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="background-color: white"><SUP>19</SUP></FONT> <FONT STYLE="font-size: 10pt">James
Byrne, Gary Somerville, Joe Byrne, Jack Watling, Nick Reynolds, and Jane Baker, &ldquo;Silicon Lifeline: Western Electronics at the Heart
of Russia's War Machine,&rdquo; Royal United Services Institute, August 8, 2022, https://static.rusi.org/RUSI-Silicon-Lifeline-finalupdated-web_1.pdf
(accessed July 2, 2024); &ldquo;American CPUs found in Iran-made Kamikaze drones,&rdquo; <I>Ukrayinska Pravda</I>, September 26, 2022,
https://www.yahoo.com/video/american-cpus-found-iran-made-122325552.html (accessed July 2, 2024). </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0"></P>

<!-- Field: Page; Sequence: 4 -->
    <DIV STYLE="margin-top: 8pt; margin-bottom: 6pt; border-bottom: Black 2px solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"></TD><TD STYLE="width: 33%; text-align: right"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->4<!-- Field: /Sequence --></TD></TR></TABLE></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 8pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%"><TR><TD STYLE="text-align: left; width: 100%"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="background-color: white">According to a report from the
Royal United Services Institute (RUSI), 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>20</SUP> Investigations
also found Microchip&rsquo;s products in other weapons systems recovered from the Ukrainian battlefield, including Russian and Iranian
drones,<SUP>21</SUP> Russian T-72 tanks,<SUP>22</SUP> and the Orlan-10 drone.<SUP>23</SUP> These drones have been used by the Russian
military to target Ukrainian civilians and civilian infrastructure in violation of IHL.<SUP>24</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 </FONT>127,000 <FONT STYLE="background-color: white">crimes of aggression and war crimes.<SUP>25</SUP></FONT>&nbsp;</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 proximity of Microchip products to likely war crimes and crimes
against humanity poses an increasing number and severity of human rights, regulatory, and reputational risks to the Company that could
negatively impact long-term shareholder value. The increase in geopolitical conflict, the regulatory responses of the USG and EU (e.g.,
sanctions, trade controls, Congressional oversight, mandatory due diligence legislation), and continued scrutiny of the semiconductor
industry by media platforms all pose potentially material impacts for Microchip.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</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: 0pt"></TD><TD STYLE="width: 13.5pt"><B>2.</B></TD><TD><B>Publicly available information and disclosures about Microchip&rsquo;s KYC, human rights, and regulatory compliance due diligence
processes are insufficient and not aligned with evolving regulations or industry peers.</B></TD></TR></TABLE>

<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">Investor concerns regarding product diversion and misuse by Russia,
Iran, and other bad actors involved in armed conflict can only be addressed through disclosures that provide an adequate level of detail
concerning due diligence processes related to KYC, human rights, and regulatory compliance. While the Filers acknowledge that o<FONT STYLE="background-color: white">n
July 7, 2023, Microchip released its &ldquo;Position on Sales to Russia,&rdquo; the document restated the Company&rsquo;s decision to
halt sales, expressed its concern regarding diversion and misuse, and noted that it works with the USG to address these risks. The position
did not provide any details regarding KYC, human rights, or regulatory compliance &ndash; beyond stating that it complies with applicable
sanctions and laws.<SUP>26</SUP></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></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>20</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">Royal Unit</FONT>ed Services Institute, August 2022, https://static.rusi.org/RUSI-Silicon-Lifeline-final-updated-web_1.pdf
(accessed July 2, 2024).</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><FONT STYLE="background-color: white"><SUP>21</SUP>
<FONT STYLE="font-size: 10pt">Chris Livesay, &ldquo;</FONT></FONT><FONT STYLE="font-size: 10pt">Russia is bombarding Ukraine with drones
guided by U.S.-made technology, and the chips are still flowing,&rdquo; <I>CBS News</I>, <FONT STYLE="background-color: white">January
4, 2023,</FONT></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">https://www.cbsnews.com/news/ukraine-war-russia-iranian-drones-us-made-technology-chips/
(accessed July 2, <FONT STYLE="background-color: white">2024). </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="background-color: white"><SUP>22</SUP> <FONT STYLE="font-size: 10pt">Anton
Mykytiuk, &ldquo;How foreign microchips end up in Russian tanks despite sanctions,&rdquo; <I>Euromaidan Press</I>, </FONT></FONT><FONT STYLE="font-size: 10pt">September
28, 2022, https://euromaidanpress.com/2022/09/28/how-foreign-microchips-end-up-in-russian-tanks-despite-sanctions/ (accessed July 2, 2024).
</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="background-color: white"><SUP>23</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></FONT><FONT STYLE="font-size: 10pt">https://storage.googleapis.com/istories/stories/2022/12/15/zapad-zapretil-prodavat-rossii-komplektuyushchie-dlya-proizvodstva-oruzhiya-no-ona-ikh-uspeshno-pokupaet/index.html
(accessed July 2, 2024). </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="background-color: white"><SUP>24</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, 20</FONT></FONT><FONT STYLE="font-size: 10pt">22, https://www.independent.co.uk/news/world/americas/us-kamikaze-drone-ukraine-russia-b2204841.html
(accesse<FONT STYLE="background-color: white">d July 2, 2024). </FONT></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="background-color: white"><SUP>25</SUP> <FONT STYLE="font-size: 10pt">&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] (2024, March 15) #RussianWarCrimes statistics for the past week:
March 8 &ndash; 15, 2024. 590 new crimes registered. At least 535 children killed, 1 257 injured (the</FONT></FONT> <FONT STYLE="font-size: 10pt">data
without full consideration of places of active hostilities). [X]. X. https://x.com/GP_Ukraine/status/1768971553385943473 (accessed July
2, 2024).</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="background-color: white"><SUP>26</SUP></FONT> <FONT STYLE="font-size: 10pt">&ldquo;Position
on Russia and Trade Controls,&rdquo; Microchip Technology, July 7, 2023 https://ww1.microchip.com/downloads/aemDocuments/documents/announcements/microchip-position-on-russia-and-trade-controls.pdf
(accessed July 2, 2024). </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0">&nbsp;</P>

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

<!-- Field: Page; Sequence: 5 -->
    <DIV STYLE="margin-top: 8pt; margin-bottom: 6pt; border-bottom: Black 2px solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"></TD><TD STYLE="width: 33%; text-align: right"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->5<!-- Field: /Sequence --></TD></TR></TABLE></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 8pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%"><TR><TD STYLE="text-align: left; width: 100%"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></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">Microchip&rsquo;s ongoing lack
of transparency concerning its due diligence processes and the absence of any mention of HRDD in the company policy or Opposition Statement
are not aligned with industry peers, evolving regulation, or USG guidance. The listing of &ldquo;customer due diligence,&rdquo; &ldquo;securing
necessary licenses,&rdquo; and &ldquo;working with regulatory agencies&rdquo; in the Opposition Statement is not a substitute for outlining
non-privileged information concerning these and other standard and emerging practices.</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">Specifically, as has been communicated
to Company staff during engagements with the Filers, industry peers are taking additional steps to prevent and mitigate human rights and
other risks associated with product diversion and misuse. </FONT>For example, American semiconductor company Qualcomm 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, Qualcomm 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.<SUP>27</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">Similarly, Intel 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: </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 0pt 0.5in"><FONT STYLE="background-color: white">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.<SUP>28</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">Other peers have responded to
shareholder concerns during engagements with commitments to conduct human rights impact assessments for their global operations and integrate
human rights into KYC red flag indicators. </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">Microchip&rsquo;s current disclosures
are also inadequate for the purpose of complying with recent mandatory due diligence legislation passed in the EU (e.g., CSRD, CSDDD)
and across its Member States (France&rsquo;s Duty of Vigilance Law, Germany&rsquo;s Supply Chain Act, Norway&rsquo;s Transparency Act).
For example, as reported by the Council of the European Union, CSDD will require: </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 0.5in"><FONT STYLE="background-color: white">&hellip; companies to ensure
that human rights and environmental obligations are respected along their chain of activities. If a violation of these obligations is
identified, companies will have to take the appropriate measures to prevent, mitigate, bring to an end or minimise the adverse impacts
arising from their own operations, those of their subsidiaries and those of their business partners in their chain of activities. Companies
can be held liable for the damage caused and will have to provide full compensation.<SUP>29</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">_____________________________</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="background-color: white"><SUP>27</SUP></FONT> &ldquo;Human
Rights Statement,&rdquo; Qualcomm, https://www.qualcomm.com/content/dam/qcomm-martech/dm-assets/documents/qualcomm-human-rights-statement.pdf
(accessed July 2, 2024).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="background-color: white"><SUP>28</SUP></FONT> &ldquo;Global
Human Rights Policy,&rdquo; Intel, https://www.intel.com/content/www/us/en/policy/policy-human-rights.html (accessed July 2, 2024).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>29</SUP> <FONT STYLE="font-size: 10pt">&ldquo;Corporate sustainability
due diligence: Council gives its final approval,&rdquo; Council of the EU, May 24, 2024, https://www.consilium.europa.eu/en/press/press-releases/2024/05/24/corporate-sustainability-due-diligence-council-gives-its-final-approval/
(accessed July 2, 2024). </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>

<!-- Field: Page; Sequence: 6 -->
    <DIV STYLE="margin-top: 8pt; margin-bottom: 6pt; border-bottom: Black 2px solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"></TD><TD STYLE="width: 33%; text-align: right"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->6<!-- Field: /Sequence --></TD></TR></TABLE></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 8pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%"><TR><TD STYLE="text-align: left; width: 100%"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></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">Finally, the USG&rsquo;s Russia
Business Advisory notes that due to the &ldquo;significant operational, legal, economic, and reputational risks&rdquo; associated with
ongoing exposure to the Russian market, companies should conduct heightened due diligence to &ldquo;reduce or mitigate these risks and
facilitate increased transparency to all stakeholders regarding such risks.&rdquo;<SUP>30</SUP> Microchip&rsquo;s current disclosures
do not adequately communicate how or if such heightened due diligence processes are being performed or communicated. </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">Without sufficient disclosure
to address Filers&rsquo; and other shareholders&rsquo; concerns related to product diversion and misuse by Russia, Iran, and other bad
actors and the potential human rights, regulatory, and reputational risks this conduct creates, it is imperative that a third party with
relevant expertise be hired to assess Microchip&rsquo;s current due diligence processes. </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</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: 0pt"></TD><TD STYLE="width: 13.5pt"><B>3.</B></TD><TD><B>Non-governmental organizations have more accurately traced deliveries of Microchip dual-use components for prohibited use than
the company&rsquo;s disclosures indicate; the Company needs to assess its due diligence processes to prevent and mitigate risks.</B></TD></TR></TABLE>

<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">The filers acknowledge the complex reality of the semiconductor industry
including the difficulties associated with transparency in value chains. The filers also recognize 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 makes complete
tracking of the end-users of tens of thousands of distinct products unfeasible. However, Microchip&rsquo;s framing that it already dedicates
time and resources to combat illicit diversion through their global trade compliance program and, as a result, has no further responsibility
for more robust due diligence to safeguard against prohibited end-use of its dual-use products is at odds with Microchip&rsquo;s commitment
to &ldquo;Professional Ethics and Social Responsibility&rdquo; as articulated in Microchip&rsquo;s &ldquo;Guiding Values.&rdquo; The Company&rsquo;s
position is even more concerning in the face of documented Microchip product proximity to on-going severe human rights abuses in Ukraine.</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 Filers&rsquo; proposal does not seek complete visibility into Microchip&rsquo;s
value chain. Rather, it asks for additional information regarding Microchip&rsquo;s due diligence processes related to KYC, human rights,
and regulatory compliance to ensure our Company is adequately addressing its regulatory and reputational risks and meeting its obligations
under the United Nations Guiding Principles on Business and Human Rights. Investigative reporting as recent as April 2024 by the American
Enterprise Institute and January 2024 by KSE and Yermak-McFaul indicate that significant amounts of commercial and dual-use Microchip
products are being imported into Russia and used during the invasion of Ukraine.</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">Investigations by these organizations, media platforms, and RUSI highlight
the fact that if NGOs can map Microchip&rsquo;s components from point of manufacture to point of end-use &ndash; in violation of international
law in Ukraine &ndash; our Company should be able to conduct more effective due diligence and better limit bad actors&rsquo; access to
their products.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>30</SUP> <FONT STYLE="font-size: 10pt">&ldquo;Risks and Considerations
for Doing Business in the Russian Federation and Russia-Occupied Territories of Ukraine,&rdquo; United States Department of State, February
23, 2024, https://www.state.gov/russia-business-advisory/ (accessed July 2, 2024).</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0">&nbsp;</P>

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

<!-- Field: Page; Sequence: 7 -->
    <DIV STYLE="margin-top: 8pt; margin-bottom: 6pt; border-bottom: Black 2px solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"></TD><TD STYLE="width: 33%; text-align: right"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->7<!-- Field: /Sequence --></TD></TR></TABLE></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 8pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%"><TR><TD STYLE="text-align: left; width: 100%"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</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"></TD><TD STYLE="width: 0.25in"><B>4.</B></TD><TD><B>The Proposal&rsquo;s request for an external report would not micromanage Microchip&rsquo;s internal business operations but would
assess and communicate to fellow shareholders to what extent Microchip&rsquo;s due diligence processes are aligned with evolving industry
practice, rapidly evolving regulations, and the company&rsquo;s own Human Rights Policy and Guiding Values.</B></TD></TR></TABLE>

<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">The filers&rsquo; proposal does
not micromanage Microchip&rsquo;s business or interfere with business operations. Rather it encourages the Company to conduct a level
of KYC, human rights, and regulatory compliance due diligence that addresses the heightened risks to our Company through product misuse
by Russia, Iran, and other bad actors operating in an increasing number of geopolitical conflicts. Additionally, Filers&rsquo; proposal
seeks to align Microchip&rsquo;s due diligence processes with industry standards and peers&rsquo; best practices. The proposal seeks non-proprietary
information at a reasonable expense and requests that a third party conducts the review to ensure an objective, expert opinion. </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"><FONT STYLE="background-color: white"><B>CONCLUSION</B></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">Information regarding a company&rsquo;s
human rights- and conflict-related risks is increasingly becoming material to investors as more evidence regarding corresponding financial
impact becomes available. For example, investors representing over $11 trillion in assets under management signed public statements concerning
these risks in Ukraine,<SUP>31</SUP> Myanmar,<SUP>32</SUP> and Xinjiang Autonomous Region, China.<SUP>33</SUP> Furthermore, &ldquo;conflict
risk&rdquo; was the second leading environmental, social, and governance (ESG) criteria among institutional investors, according to The
Forum for Sustainable and Responsible Investment&rsquo;s 2022 Report on U.S. Sustainable, Responsible and Impact Investing Trends.<SUP>34</SUP>
The request to provide information and coordinate with a third-party expert is not overburdensome especially given the material nature
of the information requested. </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">As long-term investors, the
Filers believe that commissioning an independent third-party report regarding the Company&rsquo;s due diligence is in investors&rsquo;
long-term best interests and is not only compatible with but required by Microchip&rsquo;s stated &ldquo;Guiding Values,&rdquo; specifically
the commitment to responsible business practices, a long-term &ldquo;ownership&rdquo; perspective, and products and operations of which
our Company can be proud.</FONT>&nbsp;</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"><FONT STYLE="background-color: white"><B>_____________________________</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="background-color: white"><SUP>31</SUP></FONT> <FONT STYLE="font-size: 10pt">&ldquo;Investor
Statement on the Crisis in Ukraine,&rdquo; Business &amp; Human Rights Resource Centre, May 16, 2022, https://media.businesshumanrights.org/media/documents/Investor_Statement_on_the_Crisis_in_Ukraine_16_May_2022.pdf
(accessed July 2, 2024).</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="background-color: white"><SUP>32</SUP></FONT> <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, https://www.business-humanrights.org/en/latest-news/investor-statement-on-human-rights-and-business-activities-in-myanmar/
(accessed July 2, 2024). </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="background-color: white"><SUP>33</SUP></FONT> &ldquo;Investor
Expectations on Human Rights Crisis in the Xinjiang Uyghur Autonomous Region,&rdquo; Investor Alliance for Human Rights, April 2022, https://investorsforhumanrights.org/sites/default/files/attachments/2022-
04/XUAR%20Investor%20Expectations%20Statement%20-%20April%202022.pdf (accessed July 2, 2024).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="background-color: white"><SUP>34</SUP></FONT> <FONT STYLE="font-size: 10pt">&ldquo;Report
on US Sustainable, Responsible and Impact Investing Trends,&rdquo; US SIF Foundation, 2022 https://www.ussif.org//Files/Trends/2022/Institutional%20Investors%202022.pdf
(accessed on July 2, 2024). </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.25in 0pt 0">&nbsp;</P>

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

<!-- Field: Page; Sequence: 8 -->
    <DIV STYLE="margin-top: 8pt; margin-bottom: 6pt; border-bottom: Black 2px solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"></TD><TD STYLE="width: 33%; text-align: right"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->8<!-- Field: /Sequence --></TD></TR></TABLE></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 8pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%"><TR><TD STYLE="text-align: left; width: 100%"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<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"><FONT STYLE="background-color: white"><B>We urge you to vote FOR the
Proposal requesting an </B></FONT><B>independent third-party report on Microchip&rsquo;s due diligence process to determine whether customers&rsquo;
use of the Company&rsquo;s products contribute or are linked to violations of international law.</B></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"><FONT STYLE="background-color: white">Sincerely, </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">Katie Carter</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><FONT STYLE="background-color: white">Director
of Faith-Based Investing and Shareholder Engagement</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><FONT STYLE="background-color: white">Office
of Faith-Based Investing and Shareholder Engagement</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><FONT STYLE="background-color: white">Presbyterian
Church (U.S.A)</FONT></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>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>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</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: right">9</P>

<P STYLE="margin: 0"></P>

<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 3pt; margin-bottom: 3pt"><DIV STYLE="font-size: 1pt; border-top: Black 2px solid; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="margin: 0">&nbsp;</P>

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
