Microchip Technology (MCHP) reported its Q2 earnings with adjusted EPS of $0.46, surpassing the estimated $0.43. Net sales for the quarter reached $1.16 billion, slightly above the expected $1.15 billion. The company also raised its quarterly cash dividend by 3.6% year-over-year to 45.5 cents per share. However, Microchip's Q3 guidance projected net sales between $1.03 billion and $1.10 billion, below the estimated $1.18 billion. The GAAP EPS for Q3 is expected to range from -$0.04 to $0.03. This weak outlook led to a decline in Microchip's shares, which fell by approximately 4%. In contrast, Lattice Semiconductor (LSCC) experienced a more severe drop of nearly 20% following its guidance down. Microchip's exposure includes approximately 50% in Industrial/Auto and 20% in Consumer/Comm markets, with Days of Inventory (DOI) showing an increasing trend over the years.