Dec 2 (Reuters) - Microchip Technology ( MCHP ) lowered

its third-quarter revenue forecast on Monday and announced the

closure of its wafer manufacturing factory in Arizona, as the

chipmaker looks to restructure under interim CEO Steve Sanghi.

Microchip has been through a tumultuous few quarters,

grappling with slowing orders for its automotive chips as

carmakers, navigating an uncertain macro economy, clear existing

inventory which they built up to avoid a supply crunch.

The company now expects revenue to be close to the lower end

of its previous forecast of $1.03 billion, below analysts'

expectations of $1.06 billion as per data compiled by LSEG.

Shares of Microchip fell over 3.5% in extended trading after

being around 3% higher at close. The company's stock has fallen

22% so far this year.

Microchip expects to shut down the Arizona facility in the

September 2025 quarter and generate annual cash savings of

around $90 million.

"With inventory levels high and having ample capacity in

place, we have decided to shut down our Tempe wafer fabrication

facility that we refer to as Fab 2," said interim CEO Sanghi,

who came into the role after Ganesh Moorthy retired from the top

job at the end of November.

The company said the closure should help the company

moderate its inventory levels beginning in the fourth quarter

and will affect around 500 employees.

The company said that its other factories in Oregon and

Colorado have ample space for expansion and plans to transition

product manufacturing from the Arizona plant to other such

facilities.