Microchip Technology, a leading U.S. semiconductor manufacturer, has confirmed that hackers stole employee contact information and hashed passwords during a recent cyberattack. The attack, attributed to the Play ransomware gang, occurred on August 18 and disrupted the company’s operations. In an updated filing with the U.S. Securities and Exchange Commission (SEC), Microchip revealed that its systems have been back online for about a week and a half, and it has resumed processing customer orders and shipping products.
While the company’s operational systems are restored, an ongoing investigation has uncovered that data was indeed stolen. The stolen information includes employee contact details and hashed passwords. Although hashed passwords are generally secure, they can be vulnerable if the attackers possess knowledge of the algorithm used for encryption. Microchip did not provide further details on the stolen data but has notified employees, law enforcement, and regulators.
At this stage, Microchip says there is no evidence that customer or supplier data was compromised. However, the investigation is still ongoing, with the company working alongside outside cybersecurity and forensic experts to assess the full extent of the breach. The Play ransomware group has taken credit for the attack, and Microchip is currently investigating the legitimacy of this claim.
Despite the cyberattack, Microchip reassured stakeholders that the incident is not expected to affect its financial standing. The company, which reported $7.6 billion in sales for fiscal 2024, supplies microcontrollers, embedded security devices, and radio frequency products to industries such as automotive, industrial, aerospace, and defense.
The Play ransomware gang has been particularly active, with at least 28 attacks reported globally in the past month. Since its emergence in 2022, the FBI estimates that the group has attacked over 300 organizations, including a recent high-profile case in which a county in Indiana had to declare a disaster following an attack on its government systems.
Microchip Technology continues to work on restoring systems affected by the attack and will provide updates as more information becomes available.
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