Arizona-based semiconductor maker Microchip Technology detected a cyberattack on its systems on Aug. 17. “An unauthorized third party disrupted the use of certain of our servers and certain business operations,” the company said in a regulatory filing with the SEC. Microchip had to isolate and shut down some of the affected systems while it investigated the cause of the issue, the company said.
This will inevitably mean disruption to operations, with manufacturing output falling below normal levels.Microchip has not yet determined the full scope, nature and impact of the attack, and it is not yet possible to ascertain what impact this incident will have on the company's revenue.
“As a result of this incident, some of our manufacturing facilities are operating at lower than normal levels and our ability to fulfill orders is currently affected. We are working diligently to bring the affected portions of our IT systems back online, restore normal business operations and mitigate the impact of the incident,” the filing said.
Microchip Technology hasn't said what type of attack its systems suffered, and while there are some hints that it was a ransomware attack, the company has not said whether that's the case, and no ransomware group has claimed responsibility.
Manufacturing facilities are operating at lower than normal levels
Microchip Technology
In addition to its wide customer base, the company is also one of the recipients of the US CHIPS Act grants, which the White House considers crucial to US national security. However, state-sponsored cyber attacks are becoming more frequent as the global semiconductor competition between the two giants, China and the US, intensifies, sparking a new semiconductor war that will likely last into the 21st century. Criminal organizations are also taking advantage of the digital revolution, targeting large companies with ransomware, demanding millions of dollars just to decrypt their files.
Microchip Technology is a leading company in the semiconductor industry. The company serves more than 120,000 customers across multiple industries, including clients in the aerospace, automotive, communications, defense, manufacturing and industrial markets.
Whatever the cause and impact of a cyberattack on a company, a decline in semiconductor production is never welcome news for the industry. For example, power outages in Taiwan have historically caused global semiconductor prices to rise. Events such as this one show how fragile the global semiconductor supply chain is, and it will likely take several more years for it to become more resilient to disruptions.
