August 20, 2024 at 09:22PM
Microchip Technology disclosed an unauthorized party disrupting its server use and business operations, impacting manufacturing facilities and order fulfillment. Actions were taken to contain the incident, with external cybersecurity advisors involved. The cause and extent of the disruption remain undisclosed, raising concerns given the company’s critical role in supplying chips for automotive, defense, and aerospace industries.
From the meeting notes, it is clear that there has been an unauthorized access on the information technology systems of Microchip Technology, a US semiconductor manufacturing firm. This has caused disruption to certain servers and some business operations. The company has taken actions such as isolating the affected systems, shutting down others, and seeking assistance from external cyber security advisors to address the situation.
As a result of this incident, certain manufacturing facilities are operating at less than normal levels, impacting the Company’s ability to fulfill orders. However, the company has assured that it is working to resolve the issue promptly. It is worth noting that the cause of the incident, the extent of the disruption, and the involvement of ransomware have not been disclosed.
This disruption is particularly concerning due to Microchip’s critical role as a supplier to the automotive, defense, and aerospace industries, including its connection to the military. Furthermore, the potential impact on the company’s foundry services may result in challenges for silicon supply.
The incident at Microchip adds to the growing list of cyber attacks on chipmakers, including recent incidents at TSMC, Nexperia, and AMD, as well as past examples such as the 2022 ransomware incident at Nvidia. Given the critical nature of Microchip’s products in mission-critical applications, the company’s response and resolution of this incident will be of high importance.