Microchip Technology reports unauthorized party interference during security incident | Technology

(KOAM) – Microchip Technology said Tuesday that an “unauthorized party” had disrupted its servers and business operations, representing a significant security breach for the U.S. chipmaker.

The company detected “potentially suspicious activity” in its IT systems on Saturday and has been working to assess and contain the situation since then.

The disruption has led to reduced operations at manufacturing facilities and impacted the company's ability to fulfill orders. Microchip shares fell about 2% in after-hours trading following the announcement. This incident comes as the company faces challenges such as slowed chip orders and excess inventory due to the COVID-19 pandemic.

Microchip has shut down certain systems and hired outside cybersecurity experts to investigate the breach. The company has yet to determine the full extent and impact of the incident or whether it will materially affect its financial position. Earlier this year, chip giant Advanced Micro Devices also reported an investigation into data theft, indicating ongoing security concerns in the semiconductor industry.

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