US microprocessor maker Microchip Technology claimed yesterday that a weekend cyber incident was affecting its ability to process orders.
The Arizona-based company said in a Form 8-K filing with the SEC that it detected “suspicious activity” on its IT systems on Aug. 17.
“Upon discovering the issue, we began taking steps to evaluate, contain, and remediate the potentially unauthorized activity. On August 19, 2024, we determined that an unauthorized third party had disrupted our use of certain of our servers and certain business operations,” the filing continues.
“We promptly took additional steps to address the incident, including isolating affected systems, shutting down certain systems, and initiating an investigation with the assistance of external cybersecurity advisors.”
For more information on attacks on chip companies, see: Most of the world's chip companies show signs of compromise
Microchip Technology Inc. said the incident has caused operations at its manufacturing facilities to be “below normal levels” and that while it is working hard to resume normal operations, “our ability to fulfill orders is currently being impacted.”
“The Company's investigation is ongoing, therefore the full extent, nature and impact of the incident remain unknown,” the company concluded. “As of the date of filing this report, the Company has not yet determined whether the incident may have a material effect on the Company's financial condition or results of operations.”
While this has yet to be confirmed, many indications point to an attempted ransomware attack given the operational disruption the company has experienced. Microchip made more than $8 billion in revenue last year, making it an attractive potential target for extortion.
The company manufactures a wide range of microcontroller, mixed-signal, analog and Flash-IP solutions for customers across multiple industries.
Given their importance to global supply chains, chipmakers have become popular targets for digital extortion in recent years, with major companies such as AMD, Nvidia, Nexperia, ASML and TSMC falling victim to ransomware and data theft.
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