US Chipmaker Microchip Suffers Cyberattack in Latest Semiconductor Targeting
A recent cyberattack on US semiconductor manufacturing company Microchip Technology forced it to scale back operations. l Credit: Nikolas Kokovlis/NurPhoto via Getty Images
Key Takeaways
- A cyberattack has struck Microchip Technology.
- The US chipmaker has taken steps to fix the breach.
- Microchip Technology received $162m from the Biden Administration in January.
A cyberattack on US semiconductor manufacturing company Microchip Technology forced it to scale back operations on Tuesday, Aug. 20.
In its latest filing , the firm claimed that on Aug. 17, it “detected potentially suspicious activity involving its information technology systems.”
Microchip Forced To Scale Back
Microchip claimed it was forced to shut down some systems after confirming that “certain servers and some business operations” had been compromised in the cyberattack.
The company, which supplies semiconductors to the US defense industry, said it had taken steps to fix the breach, but operations remained at “less than normal levels.”
The company said in a statement that this included “isolating the affected systems, shutting down certain systems, and launching an investigation with the assistance of external cybersecurity advisers.”
“The company is working diligently to bring the affected portions of its IT systems back online, restore normal business operations, and mitigate the impact of the incident,” Microchip said. “As the company’s investigation is ongoing, the full scope, nature, and impact of the incident are not yet known.”
Chipmakers Are an Effective Target for Cyberattacks
Semiconductor manufacturers are at the heart of the global supply chain in modern technology, making them a prime and effective target for cybercriminals.
Microchip’s operational loss is especially devastating since it received a $162m expansion grant from the Biden administration in January.
As part of the CHIPS Act of 2022, the US government has provided financial support to chip companies to strengthen US competitiveness and address global semiconductor shortages.
In February 2022, leading chip manufacturer NVIDIA experienced a significant cyberattack that garnered widespread attention.
The breach , still under investigation, involved data relating to an estimated 71,000 individuals.
The ransomware group known as Lapsus$ allegedly carried out the attack, which has since been linked to several high-profile cyberattacks.
The AI Race Is Heating Up
The “Great AI Race” has arguably heated up considerably since the launch of OpenAI’s ChatGPT in 2022.
The global recognition of AI as a transformative technology has left companies and entire countries fighting for market dominance.
The US and China are the primary competitors in this race, with both nations investing heavily in AI research and development.
The tensions between the two countries were heightened further when the US placed export sanctions on crucial AI technologies.
Europe is also a significant player but primarily focuses on ethical AI and regulation.
Other countries like Japan, South Korea, and India are also vying for a stake in AI leadership.
India’s $15.2 Billion Semiconductor Investment to Propel AI Development
