Costsof $21.4 million incurred by Microchip Technology due to a cyberattack in August
In a recent development, Microchip Technology, a leading semiconductor company serving over 125,000 customers across various industries, experienced a cyberattack in August 2025. The company initially disclosed the incident in an August securities filing.
Despite the attack, Microchip managed to recover swiftly, bringing its critical IT systems back online and resuming operations within days. However, the company did not disclose further information about the data stolen during the cyberattack.
The cyberattack incurred significant expenses for Microchip, totalling $21.4 million during the company's second quarter of fiscal 2025. The majority of these expenses were due to incremental factory underutilization charges resulting from the cybersecurity incident. It's worth noting that these expenses represented less than 2% of total revenue during the quarter.
The attack resulted in the theft of employee contact information from Microchip's IT systems and the loss of some encrypted and hashed passwords. As a result, the company reported disruptions to its operations, order fulfilment, and manufacturing.
Despite these disruptions, Microchip's financial condition and results of operations were not materially impacted by the cyberattack. The company reported a net income of $78.4 million and revenue of $1.16 billion for the quarter.
It's important to note that Microchip has not released specific details about the nature of the attack or the steps taken to prevent future incidents. For the most accurate and up-to-date information, it would be best to consult recent news sources or official announcements from Microchip Technology.
Microchip serves a diverse range of markets, including industrial, automotive, aerospace and defense, communications, and computing. The company's resilience in the face of this cyberattack underscores its commitment to maintaining the highest standards of security and reliability for its customers.
Cybersecurity expenses for Microchip Technology, due to a cyberattack in August 2025, amounted to $21.4 million during the company's second quarter of fiscal 2025. Though the attack resulted in the theft of employee contact information and some encrypted and hashed passwords, Microchip's financial condition and results of operations were not materially impacted, with a net income of $78.4 million and revenue of $1.16 billion for the quarter.
