According to Microchip Technology, the IT incident affected operations

US microprocessor maker Microchip Technology said yesterday that a cyber incident over the weekend had impacted its ability to fulfill orders.

The Arizona-based company said in a Form 8-K filed with the SEC that it detected “suspicious activity” on its IT systems on August 17.

“After identifying 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 had disrupted the Company's use of certain servers and some business operations,” the filing continued.

“The company immediately took additional steps to remediate the incident, including isolating the affected systems, shutting down certain systems, and initiating an investigation with the assistance of third-party cybersecurity advisors.”

Read more about attacks on chipmakers: Most global chipmakers show signs of compromise

Microchip Technology said its manufacturing facilities were operating “below normal levels” as a result of the incident and that its “ability to fulfill orders is currently impacted.” However, the company is working hard to resume normal business operations.

“Because the Company's investigation is ongoing, the scope, nature and impact of the incident are not yet known,” it concluded. “At the time of this filing, the Company has not yet determined whether the incident is reasonably likely to have a material impact on the Company's financial condition or results of operations.”

Although it is not yet confirmed, many signs point to an attempted ransomware attack as the company has experienced operational disruptions. Microchip made over $8 billion in revenue last year, making it an attractive potential target for extortion.

The company produces a variety of microcontroller, mixed-signal, analog and flash IP solutions for customers in numerous industries.

Given their importance to global supply chains, chipmakers have become a popular target for digital extortion in recent years. Big names like AMD, Nvidia, Nexperia, ASML and TSMC have all been victims of ransomware or data theft.

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