Microchip (MCHP) Q3 FY25 earnings call

Microchip is actively addressing a significant inventory correction following a post-COVID super cycle, with CEO Steve Sanghi implementing a 9-point plan including manufacturing footprint resizing and inventory reduction. Despite continued broad-based weakness and low visibility, the company is focused on strengthening customer relationships and winning new designs, aiming for above-market growth once excess inventory is consumed. Management is committed to the current dividend, expecting free cash flow to exceed it as inventory liberates cash.