US semiconductor leader Microchip Technology (NASDAQ: MCHP) has reported a cyberattack that has significantly impacted operations at several of its manufacturing facilities.
On August 17, the company detected unusual activity within its IT systems, and by August 19, it confirmed that specific servers and business functions had been compromised.
In response, Microchip Technology has isolated the affected systems, and some have been shut down as a precaution. The company has engaged external cybersecurity experts to assist with the ongoing investigation.
“Due to the cyberattack, several of our manufacturing facilities are operating below normal capacity, affecting our ability to fulfill orders,” Microchip Technology stated. “We are working intensively to restore the affected IT systems, resume normal operations, and minimize the impact of the attack.”
The company has yet to assess the potential material impact of the breach, in compliance with SEC regulations that require disclosure of significant breaches within four business days of discovery.
Although no specific ransomware group has claimed responsibility, the nature of the attack suggests it may be ransomware. Typically, cybercriminals delay announcing their involvement until negotiations are unsuccessful or stalled.
Microchip Technology specializes in microcontrollers, mixed-signal, analog, and Flash-IP solutions, serving approximately 123,000 customers across various sectors, including industrial, automotive, consumer, aerospace, defense, communications, and computing.