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Semiconductor maker Microchip Technology Inc. was hit by a cyberattack on Saturday that affected its manufacturing operations and ability to fulfill orders, the company said in a securities filing on Monday.
Microchip first detected suspicious activity on its internal systems on Aug. 17 and began taking steps to “assess, contain and remediate the potentially unauthorized activity,” the company said in the filing.
The company determined on Monday that an unauthorized third party had disrupted some of its servers and operations. Microchip is currently working to bring the affected IT operations back online, restore normal business operations and mitigate the impact of the security breach.
In an emailed statement Wednesday morning, Microchip confirmed that its manufacturing facilities are currently operating at below normal levels.
“Our investigation is ongoing, and therefore the full extent, nature and impact of this matter remains unknown,” Microchip said in the filing. “As of the date of this filing, we have not yet determined whether this matter may have a material effect on our financial condition or results of operations.”
Microchip said in a statement that the investigation is ongoing and that it has “no additional information to share.”
Cyberattacks are a growing threat to the manufacturing industry: according to IT security company Sophos, ransomware attacks and extortion payments in the manufacturing sector will reach a five-year high in 2023, with two-thirds of companies in the industry experiencing a ransomware attack.
Other companies in the semiconductor industry have also fallen victim to cyber attacks in recent years.
Chipmaker Nvidia was attacked in 2022, resulting in a data breach and stolen credentials, while semiconductor component supplier MKS Instruments saw its business hit by a ransomware attack, causing a $200 million revenue loss last year.
