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Microchip said an ‘unauthorised party’ disrupted its systems and has impacted its ability to fulfill manufacturing orders.
US chipmaker Microchip Technologies has been hit with a cyberattack, disrupting its systems and impacting its manufacturing capabilities.
The company revealed the details in a filing with the Securities and Exchange Commission and said it detected “suspicious activity” on its IT systems on 17 August. On 19 August, Microchip confirmed that an “unauthorised party” had disrupted certain systems and business operations.
“The company 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,” Microchip said in the filing.
The cyberattack had an impact on the company’s manufacturing capabilities, as it said its facilities are operating at “less than normal levels” and that its ability to fulfill orders has been impacted. The company manufactures and supplies chips to a variety of clients in industries including automotive, consumer, aerospace, defence and computing.
Microchip said it is working to bring its affected systems back online and mitigate the impact of the attack.
“As the company’s investigation is ongoing, the full scope, nature and impact of the incident are not yet known,” Microchip said. “The company has not yet determined whether the incident is reasonably likely to materially impact the company’s financial condition or results of operations.”
The disruption comes as the US works to build up its domestic production of chips as global competition ramps up. The US government signed the CHIPS and Science Act into law in 2022, with the aim of making the US semiconductor industry more competitive and productive.
Microchip Technology itself benefitted from this act, as the US government this year shared plans to invest approximately $162m into the Arizona-headquartered company. The US government also plans this year to give up to $6.14bn to Micron, $6.4bn to Samsung, $8.5bn to Intel and billions of dollars to TSMC, all to boost chip production.
The US and its allies have been locked in a trade war against China as both powers compete for control of the chips market. In May, the US announced a series of stronger tariffs aimed at various Chinese components and products, including semiconductors.
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