Microchip Technology, a leading US-based semiconductor manufacturer known for its global distribution of microcontrollers, microprocessors, and electronic components, including in India, has confirmed a cyberattack that has disrupted its IT systems and chip production.

On August 17, 2024, the company detected suspicious activity within its IT infrastructure, prompting immediate actions to isolate and shut down the affected systems. In a regulatory filing, Microchip Technology stated, “On August 17, 2024, Microchip Technology Incorporated detected potentially suspicious activity involving its information technology systems. Upon detecting the issue, the Company began taking steps to assess, contain, and remediate the potentially unauthorized activity. On August 19, 2024, the Company determined that an unauthorized party disrupted the Company’s use of certain servers and some business operations.”

The cyberattack has significantly impacted Microchip’s manufacturing operations, leading to reduced production levels and delays in fulfilling orders. The company is working diligently to restore normal operations while ensuring the security of its systems.

As a precautionary measure, the company has isolated the compromised systems and shut down specific operations. The incident is currently under investigation, with cybersecurity experts assisting in determining the perpetrators and the full extent of the damage. Concerns are mounting regarding the vulnerability of tech firms and chip manufacturers to such cyber threats.

Microchip Technology plays a critical role in supplying microcontrollers, analog devices, and other semiconductor components across industries such as automotive, industrial, and consumer electronics. The disruption in its production could have far-reaching effects on the global supply chain and the availability of essential components for various products.

This incident is part of a broader trend of cyberattacks targeting semiconductor companies, underscoring the increasing risks faced by the tech sector. Other major firms, including Nvidia, Microsoft, and Samsung, have also been targeted by cyber threats. Last year, Russian hackers claimed to have compromised TSMC, though the Taiwanese chip giant reported that only a third-party testing environment was affected.