diff --git a/Makefile b/Makefile
index bfa4440915..16d6d17d32 100644
--- a/Makefile
+++ b/Makefile
@@ -57,12 +57,16 @@ CLUSTERCTL := $(BIN_DIR)/clusterctl
 # Tooling binaries
 GO_INSTALL := ./hack/go-install.sh
 
+CONTROLLER_GEN_VER := v0.12.1
+CONTROLLER_GEN_BIN := controller-gen
+CONTROLLER_GEN := $(abspath $(TOOLS_BIN_DIR)/$(CONTROLLER_GEN_BIN)-$(CONTROLLER_GEN_VER))
+CONTROLLER_GEN_PKG := sigs.k8s.io/controller-tools/cmd/controller-gen
+
 GOVC_VER := $(shell cat go.mod | grep "github.com/vmware/govmomi" | awk '{print $$NF}')
 GOVC_BIN := govc
 GOVC := $(abspath $(TOOLS_BIN_DIR)/$(GOVC_BIN)-$(GOVC_VER))
 GOVC_PKG := github.com/vmware/govmomi/govc
 
-CONTROLLER_GEN := $(abspath $(TOOLS_BIN_DIR)/controller-gen)
 CONVERSION_GEN := $(TOOLS_BIN_DIR)/conversion-gen
 GINKGO := $(TOOLS_BIN_DIR)/ginkgo
 GOLANGCI_LINT := $(TOOLS_BIN_DIR)/golangci-lint
@@ -72,7 +76,7 @@ SETUP_ENVTEST := $(abspath $(TOOLS_BIN_DIR)/setup-envtest)
 CONVERSION_VERIFIER := $(abspath $(TOOLS_BIN_DIR)/conversion-verifier)
 GO_APIDIFF := $(TOOLS_BIN_DIR)/go-apidiff
 RELEASE_NOTES := $(TOOLS_BIN_DIR)/release-notes
-TOOLING_BINARIES := $(CONTROLLER_GEN) $(CONVERSION_GEN) $(GINKGO) $(GOLANGCI_LINT) $(KIND) $(KUSTOMIZE) $(CONVERSION_VERIFIER) $(GO_APIDIFF) $(RELEASE_NOTES)
+TOOLING_BINARIES := $(CONVERSION_GEN) $(GINKGO) $(GOLANGCI_LINT) $(KIND) $(KUSTOMIZE) $(CONVERSION_VERIFIER) $(GO_APIDIFF) $(RELEASE_NOTES)
 ARTIFACTS ?= $(ROOT_DIR)/_artifacts
 
 # Set --output-base for conversion-gen if we are not within GOPATH
@@ -226,11 +230,18 @@ tools: $(TOOLING_BINARIES) ## Build tooling binaries
 $(TOOLING_BINARIES):
 	make -C $(TOOLS_DIR) $(@F)
 
+$(CONTROLLER_GEN): # Build CONTROLLER_GEN from tools folder.
+	CGO_ENABLED=0 GOBIN=$(TOOLS_BIN_DIR) $(GO_INSTALL) $(CONTROLLER_GEN_PKG) $(CONTROLLER_GEN_BIN) $(CONTROLLER_GEN_VER)
+
+.PHONY: $(CONTROLLER_GEN_BIN)
+$(CONTROLLER_GEN_BIN): $(CONTROLLER_GEN) ## Build a local copy of controller-gen.
+
+
 $(GOVC): # Build GOVC from tools folder.
 	CGO_ENABLED=0 GOBIN=$(TOOLS_BIN_DIR) $(GO_INSTALL) $(GOVC_PKG) $(GOVC_BIN) $(GOVC_VER)
 
 .PHONY: $(GOVC_BIN)
-$(GOVC_BIN): $(GOVC) ## Build a local copy of kustomize.
+$(GOVC_BIN): $(GOVC) ## Build a local copy of govc.
 
 ## --------------------------------------
 ## Linting and fixing linter errors
diff --git a/config/default/crd/bases/infrastructure.cluster.x-k8s.io_haproxyloadbalancers.yaml b/config/default/crd/bases/infrastructure.cluster.x-k8s.io_haproxyloadbalancers.yaml
index 8efa139566..cb9c775472 100644
--- a/config/default/crd/bases/infrastructure.cluster.x-k8s.io_haproxyloadbalancers.yaml
+++ b/config/default/crd/bases/infrastructure.cluster.x-k8s.io_haproxyloadbalancers.yaml
@@ -3,7 +3,7 @@ apiVersion: apiextensions.k8s.io/v1
 kind: CustomResourceDefinition
 metadata:
   annotations:
-    controller-gen.kubebuilder.io/version: v0.11.4
+    controller-gen.kubebuilder.io/version: v0.12.1
   name: haproxyloadbalancers.infrastructure.cluster.x-k8s.io
 spec:
   group: infrastructure.cluster.x-k8s.io
diff --git a/config/default/crd/bases/infrastructure.cluster.x-k8s.io_vsphereclusteridentities.yaml b/config/default/crd/bases/infrastructure.cluster.x-k8s.io_vsphereclusteridentities.yaml
index adf1449121..aa2224eddd 100644
--- a/config/default/crd/bases/infrastructure.cluster.x-k8s.io_vsphereclusteridentities.yaml
+++ b/config/default/crd/bases/infrastructure.cluster.x-k8s.io_vsphereclusteridentities.yaml
@@ -3,7 +3,7 @@ apiVersion: apiextensions.k8s.io/v1
 kind: CustomResourceDefinition
 metadata:
   annotations:
-    controller-gen.kubebuilder.io/version: v0.11.4
+    controller-gen.kubebuilder.io/version: v0.12.1
   name: vsphereclusteridentities.infrastructure.cluster.x-k8s.io
 spec:
   group: infrastructure.cluster.x-k8s.io
@@ -218,6 +218,7 @@ spec:
                           "value". The requirements are ANDed.
                         type: object
                     type: object
+                    x-kubernetes-map-type: atomic
                 type: object
               secretName:
                 description: SecretName references a Secret inside the controller
@@ -349,6 +350,7 @@ spec:
                           "value". The requirements are ANDed.
                         type: object
                     type: object
+                    x-kubernetes-map-type: atomic
                 type: object
               secretName:
                 description: SecretName references a Secret inside the controller
diff --git a/config/default/crd/bases/infrastructure.cluster.x-k8s.io_vsphereclusters.yaml b/config/default/crd/bases/infrastructure.cluster.x-k8s.io_vsphereclusters.yaml
index 8d2d9546cf..61a4268620 100644
--- a/config/default/crd/bases/infrastructure.cluster.x-k8s.io_vsphereclusters.yaml
+++ b/config/default/crd/bases/infrastructure.cluster.x-k8s.io_vsphereclusters.yaml
@@ -3,7 +3,7 @@ apiVersion: apiextensions.k8s.io/v1
 kind: CustomResourceDefinition
 metadata:
   annotations:
-    controller-gen.kubebuilder.io/version: v0.11.4
+    controller-gen.kubebuilder.io/version: v0.12.1
   name: vsphereclusters.infrastructure.cluster.x-k8s.io
 spec:
   group: infrastructure.cluster.x-k8s.io
@@ -691,6 +691,7 @@ spec:
                       are ANDed.
                     type: object
                 type: object
+                x-kubernetes-map-type: atomic
               identityRef:
                 description: IdentityRef is a reference to either a Secret or VSphereClusterIdentity
                   that contains the identity to use when reconciling the cluster.
diff --git a/config/default/crd/bases/infrastructure.cluster.x-k8s.io_vsphereclustertemplates.yaml b/config/default/crd/bases/infrastructure.cluster.x-k8s.io_vsphereclustertemplates.yaml
index 2e79affa48..a301465a12 100644
--- a/config/default/crd/bases/infrastructure.cluster.x-k8s.io_vsphereclustertemplates.yaml
+++ b/config/default/crd/bases/infrastructure.cluster.x-k8s.io_vsphereclustertemplates.yaml
@@ -3,7 +3,7 @@ apiVersion: apiextensions.k8s.io/v1
 kind: CustomResourceDefinition
 metadata:
   annotations:
-    controller-gen.kubebuilder.io/version: v0.11.4
+    controller-gen.kubebuilder.io/version: v0.12.1
   name: vsphereclustertemplates.infrastructure.cluster.x-k8s.io
 spec:
   group: infrastructure.cluster.x-k8s.io
@@ -215,6 +215,7 @@ spec:
                               only "value". The requirements are ANDed.
                             type: object
                         type: object
+                        x-kubernetes-map-type: atomic
                       identityRef:
                         description: IdentityRef is a reference to either a Secret
                           or VSphereClusterIdentity that contains the identity to
diff --git a/config/default/crd/bases/infrastructure.cluster.x-k8s.io_vspheredeploymentzones.yaml b/config/default/crd/bases/infrastructure.cluster.x-k8s.io_vspheredeploymentzones.yaml
index ded4c1f182..f99eff2112 100644
--- a/config/default/crd/bases/infrastructure.cluster.x-k8s.io_vspheredeploymentzones.yaml
+++ b/config/default/crd/bases/infrastructure.cluster.x-k8s.io_vspheredeploymentzones.yaml
@@ -3,7 +3,7 @@ apiVersion: apiextensions.k8s.io/v1
 kind: CustomResourceDefinition
 metadata:
   annotations:
-    controller-gen.kubebuilder.io/version: v0.11.4
+    controller-gen.kubebuilder.io/version: v0.12.1
   name: vspheredeploymentzones.infrastructure.cluster.x-k8s.io
 spec:
   group: infrastructure.cluster.x-k8s.io
diff --git a/config/default/crd/bases/infrastructure.cluster.x-k8s.io_vspherefailuredomains.yaml b/config/default/crd/bases/infrastructure.cluster.x-k8s.io_vspherefailuredomains.yaml
index 4e894a5c2b..1f5fb2fd7d 100644
--- a/config/default/crd/bases/infrastructure.cluster.x-k8s.io_vspherefailuredomains.yaml
+++ b/config/default/crd/bases/infrastructure.cluster.x-k8s.io_vspherefailuredomains.yaml
@@ -3,7 +3,7 @@ apiVersion: apiextensions.k8s.io/v1
 kind: CustomResourceDefinition
 metadata:
   annotations:
-    controller-gen.kubebuilder.io/version: v0.11.4
+    controller-gen.kubebuilder.io/version: v0.12.1
   name: vspherefailuredomains.infrastructure.cluster.x-k8s.io
 spec:
   group: infrastructure.cluster.x-k8s.io
diff --git a/config/default/crd/bases/infrastructure.cluster.x-k8s.io_vspheremachines.yaml b/config/default/crd/bases/infrastructure.cluster.x-k8s.io_vspheremachines.yaml
index 919a85312c..2bc51c29a2 100644
--- a/config/default/crd/bases/infrastructure.cluster.x-k8s.io_vspheremachines.yaml
+++ b/config/default/crd/bases/infrastructure.cluster.x-k8s.io_vspheremachines.yaml
@@ -3,7 +3,7 @@ apiVersion: apiextensions.k8s.io/v1
 kind: CustomResourceDefinition
 metadata:
   annotations:
-    controller-gen.kubebuilder.io/version: v0.11.4
+    controller-gen.kubebuilder.io/version: v0.12.1
   name: vspheremachines.infrastructure.cluster.x-k8s.io
 spec:
   group: infrastructure.cluster.x-k8s.io
@@ -943,10 +943,10 @@ spec:
                                 description: Name is the name of resource being referenced
                                 type: string
                             required:
-                            - apiGroup
                             - kind
                             - name
                             type: object
+                            x-kubernetes-map-type: atomic
                           type: array
                         deviceName:
                           description: DeviceName may be used to explicitly assign
diff --git a/config/default/crd/bases/infrastructure.cluster.x-k8s.io_vspheremachinetemplates.yaml b/config/default/crd/bases/infrastructure.cluster.x-k8s.io_vspheremachinetemplates.yaml
index 2172061e52..ae86f3a13e 100644
--- a/config/default/crd/bases/infrastructure.cluster.x-k8s.io_vspheremachinetemplates.yaml
+++ b/config/default/crd/bases/infrastructure.cluster.x-k8s.io_vspheremachinetemplates.yaml
@@ -3,7 +3,7 @@ apiVersion: apiextensions.k8s.io/v1
 kind: CustomResourceDefinition
 metadata:
   annotations:
-    controller-gen.kubebuilder.io/version: v0.11.4
+    controller-gen.kubebuilder.io/version: v0.12.1
   name: vspheremachinetemplates.infrastructure.cluster.x-k8s.io
 spec:
   group: infrastructure.cluster.x-k8s.io
@@ -832,10 +832,10 @@ spec:
                                           being referenced
                                         type: string
                                     required:
-                                    - apiGroup
                                     - kind
                                     - name
                                     type: object
+                                    x-kubernetes-map-type: atomic
                                   type: array
                                 deviceName:
                                   description: DeviceName may be used to explicitly
diff --git a/config/default/crd/bases/infrastructure.cluster.x-k8s.io_vspherevms.yaml b/config/default/crd/bases/infrastructure.cluster.x-k8s.io_vspherevms.yaml
index ed8ec68c54..8b07eed538 100644
--- a/config/default/crd/bases/infrastructure.cluster.x-k8s.io_vspherevms.yaml
+++ b/config/default/crd/bases/infrastructure.cluster.x-k8s.io_vspherevms.yaml
@@ -3,7 +3,7 @@ apiVersion: apiextensions.k8s.io/v1
 kind: CustomResourceDefinition
 metadata:
   annotations:
-    controller-gen.kubebuilder.io/version: v0.11.4
+    controller-gen.kubebuilder.io/version: v0.12.1
   name: vspherevms.infrastructure.cluster.x-k8s.io
 spec:
   group: infrastructure.cluster.x-k8s.io
@@ -491,6 +491,7 @@ spec:
                     description: 'UID of the referent. More info: https://kubernetes.io/docs/concepts/overview/working-with-objects/names/#uids'
                     type: string
                 type: object
+                x-kubernetes-map-type: atomic
               cloneMode:
                 description: CloneMode specifies the type of clone operation. The
                   LinkedClone mode is only support for templates that have at least
@@ -909,6 +910,7 @@ spec:
                     description: 'UID of the referent. More info: https://kubernetes.io/docs/concepts/overview/working-with-objects/names/#uids'
                     type: string
                 type: object
+                x-kubernetes-map-type: atomic
               cloneMode:
                 description: CloneMode specifies the type of clone operation. The
                   LinkedClone mode is only support for templates that have at least
@@ -990,10 +992,10 @@ spec:
                                 description: Name is the name of resource being referenced
                                 type: string
                             required:
-                            - apiGroup
                             - kind
                             - name
                             type: object
+                            x-kubernetes-map-type: atomic
                           type: array
                         deviceName:
                           description: DeviceName may be used to explicitly assign
diff --git a/config/deployments/integration-tests/crds/vmoperator.vmware.com_clustervirtualmachineimages.yaml b/config/deployments/integration-tests/crds/vmoperator.vmware.com_clustervirtualmachineimages.yaml
index ed0827e9be..18998de0ef 100644
--- a/config/deployments/integration-tests/crds/vmoperator.vmware.com_clustervirtualmachineimages.yaml
+++ b/config/deployments/integration-tests/crds/vmoperator.vmware.com_clustervirtualmachineimages.yaml
@@ -3,7 +3,7 @@ apiVersion: apiextensions.k8s.io/v1
 kind: CustomResourceDefinition
 metadata:
   annotations:
-    controller-gen.kubebuilder.io/version: v0.11.4
+    controller-gen.kubebuilder.io/version: v0.12.1
   name: clustervirtualmachineimages.vmoperator.vmware.com
 spec:
   group: vmoperator.vmware.com
diff --git a/config/deployments/integration-tests/crds/vmoperator.vmware.com_contentlibraryproviders.yaml b/config/deployments/integration-tests/crds/vmoperator.vmware.com_contentlibraryproviders.yaml
index 71e31064d1..ec1f608143 100644
--- a/config/deployments/integration-tests/crds/vmoperator.vmware.com_contentlibraryproviders.yaml
+++ b/config/deployments/integration-tests/crds/vmoperator.vmware.com_contentlibraryproviders.yaml
@@ -3,7 +3,7 @@ apiVersion: apiextensions.k8s.io/v1
 kind: CustomResourceDefinition
 metadata:
   annotations:
-    controller-gen.kubebuilder.io/version: v0.11.4
+    controller-gen.kubebuilder.io/version: v0.12.1
   name: contentlibraryproviders.vmoperator.vmware.com
 spec:
   group: vmoperator.vmware.com
diff --git a/config/deployments/integration-tests/crds/vmoperator.vmware.com_contentsourcebindings.yaml b/config/deployments/integration-tests/crds/vmoperator.vmware.com_contentsourcebindings.yaml
index db24352ae1..8038985504 100644
--- a/config/deployments/integration-tests/crds/vmoperator.vmware.com_contentsourcebindings.yaml
+++ b/config/deployments/integration-tests/crds/vmoperator.vmware.com_contentsourcebindings.yaml
@@ -3,7 +3,7 @@ apiVersion: apiextensions.k8s.io/v1
 kind: CustomResourceDefinition
 metadata:
   annotations:
-    controller-gen.kubebuilder.io/version: v0.11.4
+    controller-gen.kubebuilder.io/version: v0.12.1
   name: contentsourcebindings.vmoperator.vmware.com
 spec:
   group: vmoperator.vmware.com
diff --git a/config/deployments/integration-tests/crds/vmoperator.vmware.com_contentsources.yaml b/config/deployments/integration-tests/crds/vmoperator.vmware.com_contentsources.yaml
index c51d4da939..2f5ad36f20 100644
--- a/config/deployments/integration-tests/crds/vmoperator.vmware.com_contentsources.yaml
+++ b/config/deployments/integration-tests/crds/vmoperator.vmware.com_contentsources.yaml
@@ -3,7 +3,7 @@ apiVersion: apiextensions.k8s.io/v1
 kind: CustomResourceDefinition
 metadata:
   annotations:
-    controller-gen.kubebuilder.io/version: v0.11.4
+    controller-gen.kubebuilder.io/version: v0.12.1
   name: contentsources.vmoperator.vmware.com
 spec:
   group: vmoperator.vmware.com
diff --git a/config/deployments/integration-tests/crds/vmoperator.vmware.com_virtualmachineclassbindings.yaml b/config/deployments/integration-tests/crds/vmoperator.vmware.com_virtualmachineclassbindings.yaml
index a17caf6958..f780199ea9 100644
--- a/config/deployments/integration-tests/crds/vmoperator.vmware.com_virtualmachineclassbindings.yaml
+++ b/config/deployments/integration-tests/crds/vmoperator.vmware.com_virtualmachineclassbindings.yaml
@@ -3,7 +3,7 @@ apiVersion: apiextensions.k8s.io/v1
 kind: CustomResourceDefinition
 metadata:
   annotations:
-    controller-gen.kubebuilder.io/version: v0.11.4
+    controller-gen.kubebuilder.io/version: v0.12.1
   name: virtualmachineclassbindings.vmoperator.vmware.com
 spec:
   group: vmoperator.vmware.com
diff --git a/config/deployments/integration-tests/crds/vmoperator.vmware.com_virtualmachineclasses.yaml b/config/deployments/integration-tests/crds/vmoperator.vmware.com_virtualmachineclasses.yaml
index 807848dae5..dd6b06248a 100644
--- a/config/deployments/integration-tests/crds/vmoperator.vmware.com_virtualmachineclasses.yaml
+++ b/config/deployments/integration-tests/crds/vmoperator.vmware.com_virtualmachineclasses.yaml
@@ -3,7 +3,7 @@ apiVersion: apiextensions.k8s.io/v1
 kind: CustomResourceDefinition
 metadata:
   annotations:
-    controller-gen.kubebuilder.io/version: v0.11.4
+    controller-gen.kubebuilder.io/version: v0.12.1
   name: virtualmachineclasses.vmoperator.vmware.com
 spec:
   group: vmoperator.vmware.com
diff --git a/config/deployments/integration-tests/crds/vmoperator.vmware.com_virtualmachineimages.yaml b/config/deployments/integration-tests/crds/vmoperator.vmware.com_virtualmachineimages.yaml
index d0c8feee61..d716a7eab8 100644
--- a/config/deployments/integration-tests/crds/vmoperator.vmware.com_virtualmachineimages.yaml
+++ b/config/deployments/integration-tests/crds/vmoperator.vmware.com_virtualmachineimages.yaml
@@ -3,7 +3,7 @@ apiVersion: apiextensions.k8s.io/v1
 kind: CustomResourceDefinition
 metadata:
   annotations:
-    controller-gen.kubebuilder.io/version: v0.11.4
+    controller-gen.kubebuilder.io/version: v0.12.1
   name: virtualmachineimages.vmoperator.vmware.com
 spec:
   group: vmoperator.vmware.com
diff --git a/config/deployments/integration-tests/crds/vmoperator.vmware.com_virtualmachinepublishrequests.yaml b/config/deployments/integration-tests/crds/vmoperator.vmware.com_virtualmachinepublishrequests.yaml
index 052dc913a6..45e84a0829 100644
--- a/config/deployments/integration-tests/crds/vmoperator.vmware.com_virtualmachinepublishrequests.yaml
+++ b/config/deployments/integration-tests/crds/vmoperator.vmware.com_virtualmachinepublishrequests.yaml
@@ -3,7 +3,7 @@ apiVersion: apiextensions.k8s.io/v1
 kind: CustomResourceDefinition
 metadata:
   annotations:
-    controller-gen.kubebuilder.io/version: v0.11.4
+    controller-gen.kubebuilder.io/version: v0.12.1
   name: virtualmachinepublishrequests.vmoperator.vmware.com
 spec:
   group: vmoperator.vmware.com
diff --git a/config/deployments/integration-tests/crds/vmoperator.vmware.com_virtualmachines.yaml b/config/deployments/integration-tests/crds/vmoperator.vmware.com_virtualmachines.yaml
index 30b54d777f..ae58f74278 100644
--- a/config/deployments/integration-tests/crds/vmoperator.vmware.com_virtualmachines.yaml
+++ b/config/deployments/integration-tests/crds/vmoperator.vmware.com_virtualmachines.yaml
@@ -3,7 +3,7 @@ apiVersion: apiextensions.k8s.io/v1
 kind: CustomResourceDefinition
 metadata:
   annotations:
-    controller-gen.kubebuilder.io/version: v0.11.4
+    controller-gen.kubebuilder.io/version: v0.12.1
   name: virtualmachines.vmoperator.vmware.com
 spec:
   group: vmoperator.vmware.com
diff --git a/config/deployments/integration-tests/crds/vmoperator.vmware.com_virtualmachineservices.yaml b/config/deployments/integration-tests/crds/vmoperator.vmware.com_virtualmachineservices.yaml
index b9d855755f..e4a8e54665 100644
--- a/config/deployments/integration-tests/crds/vmoperator.vmware.com_virtualmachineservices.yaml
+++ b/config/deployments/integration-tests/crds/vmoperator.vmware.com_virtualmachineservices.yaml
@@ -3,7 +3,7 @@ apiVersion: apiextensions.k8s.io/v1
 kind: CustomResourceDefinition
 metadata:
   annotations:
-    controller-gen.kubebuilder.io/version: v0.11.4
+    controller-gen.kubebuilder.io/version: v0.12.1
   name: virtualmachineservices.vmoperator.vmware.com
 spec:
   group: vmoperator.vmware.com
diff --git a/config/deployments/integration-tests/crds/vmoperator.vmware.com_virtualmachinesetresourcepolicies.yaml b/config/deployments/integration-tests/crds/vmoperator.vmware.com_virtualmachinesetresourcepolicies.yaml
index bec1bebbfc..0da864e240 100644
--- a/config/deployments/integration-tests/crds/vmoperator.vmware.com_virtualmachinesetresourcepolicies.yaml
+++ b/config/deployments/integration-tests/crds/vmoperator.vmware.com_virtualmachinesetresourcepolicies.yaml
@@ -3,7 +3,7 @@ apiVersion: apiextensions.k8s.io/v1
 kind: CustomResourceDefinition
 metadata:
   annotations:
-    controller-gen.kubebuilder.io/version: v0.11.4
+    controller-gen.kubebuilder.io/version: v0.12.1
   name: virtualmachinesetresourcepolicies.vmoperator.vmware.com
 spec:
   group: vmoperator.vmware.com
diff --git a/config/deployments/integration-tests/crds/vmoperator.vmware.com_webconsolerequests.yaml b/config/deployments/integration-tests/crds/vmoperator.vmware.com_webconsolerequests.yaml
index 2cb8dbc604..e019753f48 100644
--- a/config/deployments/integration-tests/crds/vmoperator.vmware.com_webconsolerequests.yaml
+++ b/config/deployments/integration-tests/crds/vmoperator.vmware.com_webconsolerequests.yaml
@@ -3,7 +3,7 @@ apiVersion: apiextensions.k8s.io/v1
 kind: CustomResourceDefinition
 metadata:
   annotations:
-    controller-gen.kubebuilder.io/version: v0.11.4
+    controller-gen.kubebuilder.io/version: v0.12.1
   name: webconsolerequests.vmoperator.vmware.com
 spec:
   group: vmoperator.vmware.com
diff --git a/config/supervisor/crd/vmware.infrastructure.cluster.x-k8s.io_providerserviceaccounts.yaml b/config/supervisor/crd/vmware.infrastructure.cluster.x-k8s.io_providerserviceaccounts.yaml
index 3f7112437b..110dc69377 100644
--- a/config/supervisor/crd/vmware.infrastructure.cluster.x-k8s.io_providerserviceaccounts.yaml
+++ b/config/supervisor/crd/vmware.infrastructure.cluster.x-k8s.io_providerserviceaccounts.yaml
@@ -3,7 +3,7 @@ apiVersion: apiextensions.k8s.io/v1
 kind: CustomResourceDefinition
 metadata:
   annotations:
-    controller-gen.kubebuilder.io/version: v0.11.4
+    controller-gen.kubebuilder.io/version: v0.12.1
   name: providerserviceaccounts.vmware.infrastructure.cluster.x-k8s.io
 spec:
   group: vmware.infrastructure.cluster.x-k8s.io
diff --git a/config/supervisor/crd/vmware.infrastructure.cluster.x-k8s.io_vsphereclusters.yaml b/config/supervisor/crd/vmware.infrastructure.cluster.x-k8s.io_vsphereclusters.yaml
index 6bbe41f6a9..efcdc59522 100644
--- a/config/supervisor/crd/vmware.infrastructure.cluster.x-k8s.io_vsphereclusters.yaml
+++ b/config/supervisor/crd/vmware.infrastructure.cluster.x-k8s.io_vsphereclusters.yaml
@@ -3,7 +3,7 @@ apiVersion: apiextensions.k8s.io/v1
 kind: CustomResourceDefinition
 metadata:
   annotations:
-    controller-gen.kubebuilder.io/version: v0.11.4
+    controller-gen.kubebuilder.io/version: v0.12.1
   name: vsphereclusters.vmware.infrastructure.cluster.x-k8s.io
 spec:
   group: vmware.infrastructure.cluster.x-k8s.io
diff --git a/config/supervisor/crd/vmware.infrastructure.cluster.x-k8s.io_vsphereclustertemplates.yaml b/config/supervisor/crd/vmware.infrastructure.cluster.x-k8s.io_vsphereclustertemplates.yaml
index 5c475d731f..b327a20d80 100644
--- a/config/supervisor/crd/vmware.infrastructure.cluster.x-k8s.io_vsphereclustertemplates.yaml
+++ b/config/supervisor/crd/vmware.infrastructure.cluster.x-k8s.io_vsphereclustertemplates.yaml
@@ -3,7 +3,7 @@ apiVersion: apiextensions.k8s.io/v1
 kind: CustomResourceDefinition
 metadata:
   annotations:
-    controller-gen.kubebuilder.io/version: v0.11.4
+    controller-gen.kubebuilder.io/version: v0.12.1
   name: vsphereclustertemplates.vmware.infrastructure.cluster.x-k8s.io
 spec:
   group: vmware.infrastructure.cluster.x-k8s.io
diff --git a/config/supervisor/crd/vmware.infrastructure.cluster.x-k8s.io_vspheremachines.yaml b/config/supervisor/crd/vmware.infrastructure.cluster.x-k8s.io_vspheremachines.yaml
index 9a8aeaf82b..03d1112b77 100644
--- a/config/supervisor/crd/vmware.infrastructure.cluster.x-k8s.io_vspheremachines.yaml
+++ b/config/supervisor/crd/vmware.infrastructure.cluster.x-k8s.io_vspheremachines.yaml
@@ -3,7 +3,7 @@ apiVersion: apiextensions.k8s.io/v1
 kind: CustomResourceDefinition
 metadata:
   annotations:
-    controller-gen.kubebuilder.io/version: v0.11.4
+    controller-gen.kubebuilder.io/version: v0.12.1
   name: vspheremachines.vmware.infrastructure.cluster.x-k8s.io
 spec:
   group: vmware.infrastructure.cluster.x-k8s.io
diff --git a/config/supervisor/crd/vmware.infrastructure.cluster.x-k8s.io_vspheremachinetemplates.yaml b/config/supervisor/crd/vmware.infrastructure.cluster.x-k8s.io_vspheremachinetemplates.yaml
index e20ce5edaf..97bbe2a833 100644
--- a/config/supervisor/crd/vmware.infrastructure.cluster.x-k8s.io_vspheremachinetemplates.yaml
+++ b/config/supervisor/crd/vmware.infrastructure.cluster.x-k8s.io_vspheremachinetemplates.yaml
@@ -3,7 +3,7 @@ apiVersion: apiextensions.k8s.io/v1
 kind: CustomResourceDefinition
 metadata:
   annotations:
-    controller-gen.kubebuilder.io/version: v0.11.4
+    controller-gen.kubebuilder.io/version: v0.12.1
   name: vspheremachinetemplates.vmware.infrastructure.cluster.x-k8s.io
 spec:
   group: vmware.infrastructure.cluster.x-k8s.io
diff --git a/hack/tools/Makefile b/hack/tools/Makefile
index 0f32996051..11241d9719 100644
--- a/hack/tools/Makefile
+++ b/hack/tools/Makefile
@@ -36,7 +36,6 @@ BIN_DIR := bin
 SRCS := go.mod go.sum
 
 # Binaries.
-CONTROLLER_GEN := $(BIN_DIR)/controller-gen
 GOLANGCI_LINT := $(BIN_DIR)/golangci-lint
 KUSTOMIZE := $(BIN_DIR)/kustomize
 CONVERSION_GEN := $(BIN_DIR)/conversion-gen
@@ -57,10 +56,6 @@ help: ## Display this help
 ## Binaries
 ## --------------------------------------
 
-controller-gen: $(CONTROLLER_GEN) $(SRCS) ## Build controller-gen
-$(CONTROLLER_GEN): go.mod
-	go build -tags=tools -o $@ sigs.k8s.io/controller-tools/cmd/controller-gen
-
 conversion-gen: $(CONVERSION_GEN) $(SRCS) ## Build conversion-gen
 $(CONVERSION_GEN): go.mod
 	go build -tags=tools -o $@ k8s.io/code-generator/cmd/conversion-gen
diff --git a/hack/tools/go.mod b/hack/tools/go.mod
index 9697dfd4cb..d0665385bb 100644
--- a/hack/tools/go.mod
+++ b/hack/tools/go.mod
@@ -8,7 +8,6 @@ require (
 	k8s.io/code-generator v0.26.4
 	sigs.k8s.io/cluster-api/hack/tools v0.0.0-20211104153216-fb1f86267fed
 	sigs.k8s.io/controller-runtime/tools/setup-envtest v0.0.0-20211110210527-619e6b92dab9
-	sigs.k8s.io/controller-tools v0.11.4
 	sigs.k8s.io/kind v0.17.0
 	sigs.k8s.io/kubebuilder-release-tools/notes v0.0.0-20220428224951-d8a44c7aef35
 	sigs.k8s.io/kustomize/kustomize/v4 v4.4.1
@@ -119,6 +118,7 @@ require (
 	k8s.io/klog/v2 v2.80.1 // indirect
 	k8s.io/kube-openapi v0.0.0-20221012153701-172d655c2280 // indirect
 	k8s.io/utils v0.0.0-20221107191617-1a15be271d1d // indirect
+	sigs.k8s.io/controller-tools v0.11.4 // indirect
 	sigs.k8s.io/json v0.0.0-20220713155537-f223a00ba0e2 // indirect
 	sigs.k8s.io/kustomize/api v0.10.1 // indirect
 	sigs.k8s.io/kustomize/cmd/config v0.10.2 // indirect
diff --git a/hack/tools/tools.go b/hack/tools/tools.go
index 05a91082ca..2a18b46154 100644
--- a/hack/tools/tools.go
+++ b/hack/tools/tools.go
@@ -26,7 +26,6 @@ import (
 	_ "k8s.io/code-generator/cmd/conversion-gen"
 	_ "sigs.k8s.io/cluster-api/hack/tools"
 	_ "sigs.k8s.io/controller-runtime/tools/setup-envtest"
-	_ "sigs.k8s.io/controller-tools/cmd/controller-gen"
 	_ "sigs.k8s.io/kind"
 	_ "sigs.k8s.io/kubebuilder-release-tools/notes"
 	_ "sigs.k8s.io/kustomize/kustomize/v4"