Cyber attack disrupts Microchip's manufacturing operations

American semiconductor supplier Microchip Technology experienced a data security incident earlier this week that disrupted its manufacturing operations and delayed chip shipments to customers.

 

Headquartered in Chandler, Arizona, Microchip provides microcontroller, mixed-signal, analog and Flash-IP solutions  used by hundreds of thousands of customers across automotive, consumer, aerospace and defense, communications and other industries.

 

In a filing with the U.S. Securities and Exchange Commission, Microchip Technology said that on August 17, it identified suspicious activity in its internal network and immediately launched an investigation, with assistance from external cyber security experts, to determine the nature and scope of the incident.

 

The U.S. chipmaker said it also took steps to contain the incident and secure the affected portion of its network.

 

“On August 19, 2024, the Company determined that an unauthorised party disrupted the Company’s use of certain servers and some business operations,” it said, adding that it “promptly took additional steps to address the incident, including isolating the affected systems, shutting down certain systems, and launching an investigation with the assistance of external cybersecurity advisors.”
 
While Microchip’s investigation is still ongoing, the chipmaker said that the incident has affected its manufacturing facilities, forcing them to operate “at less than normal levels.” This in turn has affected Microchip’s ability to fulfill orders.

 

“The Company is working diligently to bring the affected portions of its IT systems back online, restore normal business operations and mitigate the impact of the incident.

 

“As the Company’s investigation is ongoing, the full scope, nature and impact of the incident are not yet known. As of the date of this filing, the Company has not yet determined whether the incident is reasonably likely to materially impact the Company’s financial condition or results of operations,” Microchip added.

 

As of now, no known hacker group has claimed responsibility for the cyber intrusion. Also, the company is yet to share details on whether it has been able to identify the perpetrators behind the cyber incident or the nature of the attack.