Chipmaker Microchip Technology was hit by a cyberattack on Saturday, impacting its manufacturing operations and ability to fill orders, the company disclosed in a securities filing Monday.
Microchip first detected suspicious activity in its internal systems on Aug. 17, when it began taking steps to "assess, contain and remediate the potentially unauthorized activity," the company said in the filing.
On Monday, the company determined an unauthorized party had disrupted some servers and operations. Microchip is now working to bring impacted IT operations back online, restore normal operations and mitigate the security breach's impact.
The company’s manufacturing facilities are currently operating below normal levels, Microchip confirmed in an emailed statement Wednesday morning.
"As the Company’s investigation is ongoing, the full scope, nature and impact of the incident are not yet known," Microchip said in its filing. "As of the date of this filing, the Company has not yet determined whether the incident is reasonably likely to materially impact the Company’s financial condition or results of operations."
Microchip noted in its statement the investigation is ongoing with “no additional information to share.”
Cyberattacks are an increasingly large threat to the manufacturing industry. Ransomware attacks and extortion payments hit a five-year high in manufacturing organizations in 2023, with two-thirds of companies in the industry experiencing a ransomware attack, according to IT security firm Sophos.
Others in the semiconductor sector have also been hit by cyberattacks in recent years.
Chipmaker Nvidia dealt with an attack in 2022, which resulted in a data leak and credential theft. And semiconductor component supplier MKS Instruments took a $200 million revenue hit last year after a ransomware attack impacted its operations.