Microchip Technology hit by cyberattack, disrupting manufacturing operations. A major disruption to semiconductor production has been reported, impacting the company’s ability to meet customer orders. Experts suggest the attack may be linked to nation-states.
Arizona-based semiconductor manufacturer Microchip Technology Incorporated has disclosed a major cyberattack that has impacted its operations across multiple manufacturing facilities.
The company, a leading supplier of microcontrollers and analogue semiconductors to a wide range of industries, including automotive, industrial, and consumer electronics, reported the incident on Tuesday.
The attack, which began on August 17, 2024, resulted in the disruption of certain servers and business operations. By August 19, 2024, Microchip Technology confirmed that an unauthorized party had disrupted its server operations and affected several business processes.
According to the company’s SEC filing, Microchip Technology took immediate action, including isolating affected systems, shutting down certain operations, and engaging external cybersecurity experts to conduct a thorough investigation.
Consequently, several of the company’s manufacturing facilities are currently operating below capacity, which has impacted its ability to fulfil orders for its extensive customer base of approximately 123,000 clients.
The extent of the damage is still unclear, but the incident has raised serious concerns about the vulnerability of critical infrastructure to cyberattacks. Experts suggest that the attack may be linked to nation-states seeking to disrupt operations or gain access to sensitive data.
“This attack underscores the growing threat posed by cyberattacks to vital industries,” said Ted Miracco, CEO of Approov, a cybersecurity firm. “While China is known for intellectual property theft, the tactics employed in this attack align more closely with the disruptive tactics of Russia and Iran or the financially motivated ransomware attacks linked to North Korea.”
Miracco also emphasized that the disruption of multiple manufacturing facilities aligns with the strategic objectives of nation-states known for causing chaos or weakening adversaries through cyber operations.
