US-based semiconductor maker Microchip Technology disclosed a security incident that disrupted operations at multiple manufacturing facilities. Due to the attack, the company was not able to fulfill client orders across various sectors, including industrial, automotive, aerospace and defense, and communications.

The company, headquartered in Chandler, Arizona, serves approximately 123,000 customers worldwide.

In a SEC filing, the firm said it detected suspicious activity on its information technology (IT) systems on August 17, 2024. By August 19, the company confirmed that an unauthorized party had compromised certain servers and disrupted business operations.

In response, Microchip Technology took steps to contain the breach, including shutting down affected systems and isolating compromised networks. The company has since engaged external cybersecurity experts to assist with the investigation and remediation efforts.

Due to the cyberattack, several of Microchip Technology’s manufacturing facilities are currently operating at reduced capacity. This has led to delays in fulfilling orders, although the full extent of the impact on the company’s supply chain and customer commitments remains unclear. The company is working to restore normal operations and minimize disruption to its customers.

Microchip Technology has not yet determined whether the incident will have a material impact on its financial performance, noting that the investigation is still ongoing.