On May 9, Zacks Investment Research updated the research report on premium semiconductor manufacturer Microchip Technology Incorporated MCHP.Despite a challenging macroeconomic environment, Microchip reported strong fourth-quarter fiscal 2016 results. Non-GAAP net income for the quarter was $153.0 million or 70 cents per share compared with $148.8 million or 68 cents per share in the year-earlier quarter. Recurring earnings (with stock-based compensation adjustments) were 65 cents per share, which comfortably exceeded the Zacks Consensus Estimate by 5 cents.With solid microcontroller sales, non-GAAP revenues for fourth-quarter fiscal 2016 were up 3.9% to an all-time high of $568.4 million and exceeded the Zacks Consensus Estimate of $564 million. Microchip’s microcontroller business continued to outperform the market with new product momentum and steady customer engagements.Microchip is one of the fastest-growing providers of 16-bit and 32-bit microcontrollers in the world. The company expects to continue this momentum and strengthen its position as the best-performing microcontroller franchise in the industry. Microchip is increasingly expanding its touch business beyond handsets and tablets in areas such as automotive industrial applications. The Analog business has also become one of the largest analog franchises in the market. In order to further capitalize on this burgeoning business potential, Microchip is developing and introducing a wide range of innovative and proprietary new products. All these initiatives augur well for the long-term growth prospects of the company.High quality standards, solid performance, reliability, ease of use, pricing and diversity of products make Microchip one of the better-positioned companies in the semiconductor market. With a diligent focus on right-sizing the various components of inventory holding, Microchip’s investment strategy takes a holistic view of the rapidly evolving market and deploys a dynamic capital allocation approach. Over the years, Microchip has consistently returned significant cash to its shareholders through dividends and share repurchases. All these offer a lucrative investment proposition for investors seeking to own blue-chip stocks that promise a healthy return on investments.We remain impressed with the strong performance of this Zacks Rank #1 (Strong Buy) stock. Some other stocks that look promising in the industry include M/A-Com Technology Solutions Holdings, Inc. MTSI, Monolithic Power Systems, Inc. MPWR and Silicon Laboratories Inc. SLAB, each sporting the same Zacks Rank as Microchip.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report MICROCHIP TECH (MCHP): Free Stock Analysis Report SILICON LAB INC (SLAB): Free Stock Analysis Report MONOLITHIC PWR (MPWR): Free Stock Analysis Report MA-COM TECH SOL (MTSI): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research