Microchip Technology (MCHP)

22.          DIVIDENDS

On October 28, 2002, the Company announced that its Board of Directors had approved and instituted a quarterly cash dividend on its common stock. The initial quarterly dividend of $0.02 per share was paid on December 6, 2003 in the amount of $4.1 million. The Company has continued to pay quarterly dividends and has increased the amount of such dividends on a regular basis. During the year ended March 31, 2006, the Company paid dividends totaling $0.57 per share for a total dividend payment of $120.1 million. During the year ended March 31, 2005, the Company paid dividends totaling $0.208 per share for a total dividend payment of $43.0 million. During the year ended March 31, 2004, the Company paid dividends totaling $0.113 per share for a total dividend payout of $23.3 million.

F-24

(14)         Dividends

On October 28, 2002, the Company announced that its Board of Directors had approved and instituted a quarterly cash dividend on its common stock.  A quarterly cash dividend of $0.16 per share was paid on November 18, 2005 in the aggregate amount of $33.6 million.  A quarterly cash dividend of $0.19 per share was declared on January 19, 2006 and will be paid on February 16, 2006 to shareholders of record as of February 2, 2006.  The Company expects the February 2006 payment of its quarterly cash dividend to be approximately $40.0 million.

On October 28, 2002, the Company announced that its Board of Directors had approved and instituted a quarterly cash dividend on its common stock.  A quarterly cash dividend of $0.052 per share was paid on December 1, 2004 in the amount of $10.8 million.  A quarterly cash dividend of $0.07 per share was declared on January 24, 2005 and will be paid on March 4, 2005 to shareholders of record as of February 11, 2005.  The Company expects the March 4, 2005 payment of its quarterly cash dividend to be approximately $14.4 million.