Microchip Technology manufacturing facilities impacted by cyberattack

American semiconductor manufacturer Microchip Technology Incorporated has had some of its business operations disrupted by a cyberattack.

“As a result of the incident, certain of the Company’s manufacturing facilities are operating at less than normal levels, and the Company’s ability to fulfill orders is currently impacted,” the company revealed in a SEC filing on Tuesday.

What is known about the cyberattack?

Microchip Technology detected potentially suspicious activity involving its IT systems on August 17, 2024. Two days after, the company “determined that an unauthorized party disrupted the Company’s use of certain servers and some business operations.”

The company then isolated the affected systems, shut down certain systems, and called in external cybersecurity advisors to help with the investigation.

It is currently unknown which of the company’s manufacturing facilities have been affected by the attack, and whether the attack involved the use of ransomware or resulted in the theft of data.

“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 concluded.

About Microchip Technology

Microchip Technology is a publicly listed corporation that manufactures – among other things – microcontrollers, microprocessors, embedded controllers, security and authentication products, and integrated circuits.

Its products are used by companies in a variety of industries, including automotive, communications, computing, medical, aerospace and defense.

Earlier this year, the company has been awarded $162 million in federal incentives under the CHIPS and Science Act.

“Shortages of microcontrollers during the pandemic affected over 1% of global GDP. By investing in Microchip, the Biden-Harris Administration would help advance U.S. economic and national security by further securing a reliable, domestic supply of these chips,” the US Department of Commerce said at the time.

“The approximately $162 million in proposed CHIPS funding would be split across two projects: approximately $90 million to modernize and expand a fabrication facility in Colorado Springs, Colorado, and approximately $72 million to expand a fabrication facility in Gresham, Oregon.”

Microchip Technology is not the first semiconductor manufacturer to suffer a cyberattack. Earlier this year, Dutch chipmaker Nexperia had their sensitive data stolen and leaked online. In 2022, graphics chipmaker Nvidia was hit by ransomware group Lapsus$, who stole sensitive proprietary data.