Microchip Technology has disclosed a cyber incident involving an “unauthorized party” that has disrupted some of its servers and affected business operations. This latest security breach adds to the series of incidents impacting U.S. chipmakers this year. The company identified “potentially suspicious activity” in its IT systems on Saturday, prompting immediate measures to assess and contain the situation. Despite these efforts, the disruption has led to a decrease in manufacturing output, impairing Microchip’s ability to fulfill orders. This incident comes as the company faces challenges with slowing demand for chips, a consequence of clients working through excess inventory accumulated during the COVID-19 pandemic.
Additionally, earlier this year, Advanced Micro Devices experienced a similar issue, where claims of stolen data were under investigation following a hack. In response to the current breach, Microchip has shut down specific systems and initiated an investigation with the support of external cybersecurity experts. The full extent of the incident remains unclear, and the company has yet to determine whether the disruption will significantly impact its financial condition.
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