Microchip Technology has revealed that an “unauthorized party” had disrupted its use of certain servers and impacted some of its business operations.
Microchip Technology detected “potentially suspicious activity” in its IT systems on Saturday and has since taken steps to assess and contain the issue.
Microchip said its manufacturing facilities are operating below normal levels, affecting its ability to fulfill orders. This incident adds to the challenges faced by U.S. chipmakers this year, including a previous case where Advanced Micro Devices (AMD) reported a potential data breach.
Microchip has shut down certain systems and initiated an investigation with the help of cybersecurity experts. The extent of the breach and its potential impact on the company’s financial condition are still unknown. This disruption comes at a time when Microchip is already dealing with reduced chip orders as clients work through excess inventory accumulated during the COVID-19 pandemic, Reuters news report said.
