Microchip Technology has raised its third-quarter net sales forecast to approximately $1.19 billion. According to financial data provider FactSet, the new forecast released on Monday not only exceeds the semiconductor manufacturer’s previous guidance of $1.1 billion to $1.15 billion in net sales but also surpasses Wall Street’s estimate of $1.14 billion. CEO Steve Sanghi attributed the upward revision to a recovery in end markets, inventory adjustments, strong order volume in the December quarter, and the smooth execution of the company’s recovery plan. “Our internal inventory has been significantly reduced, which will begin to lower the scale of our inventory write-offs,” Sanghi said. “We are also prepared to expand factory capacity in the March quarter, which will begin to reduce costs associated with underutilized capacity.”