diff --git a/.gitlab-ci.yml b/.gitlab-ci.yml
index bdef0bd14..a6879b643 100644
--- a/.gitlab-ci.yml
+++ b/.gitlab-ci.yml
@@ -25,7 +25,7 @@ variables:
     IDF_CHECKOUT_REF: "v5.2.1"
     # This variable represents the short hash of the connectedhomeip submodule.
     # Note: Do change this short hash on submodule update MRs.
-    CHIP_SHORT_HASH: "13ab158f10"
+    CHIP_SHORT_HASH: "1dc089ce96"
     DOCKER_IMAGE_NAME: "espressif/chip-idf"
 
 .add_gitlab_ssh_key: &add_gitlab_ssh_key |
diff --git a/README.md b/README.md
index 7b84575f1..0b82b4f33 100644
--- a/README.md
+++ b/README.md
@@ -28,7 +28,7 @@ section in the ESP-Matter Programming Guide.
 
 ## Supported ESP-IDF and connectedhomeip versions
 
-- This SDK currently works with commit [13ab158f10](https://github.com/project-chip/connectedhomeip/tree/13ab158f10) of connectedhomeip.
+- This SDK currently works with commit [1dc089ce96](https://github.com/project-chip/connectedhomeip/tree/1dc089ce96) of connectedhomeip.
 - For Matter projects development with this SDK, it is recommended to utilize ESP-IDF [v5.2.1](https://github.com/espressif/esp-idf/tree/v5.2.1).
 
 
diff --git a/connectedhomeip/connectedhomeip b/connectedhomeip/connectedhomeip
index 13ab158f1..1dc089ce9 160000
--- a/connectedhomeip/connectedhomeip
+++ b/connectedhomeip/connectedhomeip
@@ -1 +1 @@
-Subproject commit 13ab158f107c06ad9d4a2591aba438d212500b2d
+Subproject commit 1dc089ce965e6b627b4c4ecd08b0e1882ece6b53
diff --git a/examples/mfg_test_app/sdkconfig.defaults.esp32h2 b/examples/mfg_test_app/sdkconfig.defaults.esp32h2
index 271c452d9..ea52fa0bb 100644
--- a/examples/mfg_test_app/sdkconfig.defaults.esp32h2
+++ b/examples/mfg_test_app/sdkconfig.defaults.esp32h2
@@ -7,3 +7,7 @@ CONFIG_BT_NIMBLE_ENABLED=y
 
 # Enable DS Peripheral
 CONFIG_ESP_SECURE_CERT_DS_PERIPHERAL=y
+
+# Disable STA and AP for ESP32H2
+CONFIG_ENABLE_WIFI_STATION=n
+CONFIG_ENABLE_WIFI_AP=n
\ No newline at end of file