Home Industry News Chip Company Loses $250m After Ransomware Hits Supply Chain

Chip Company Loses $250m After Ransomware Hits Supply Chain


One of the leading global suppliers of equipment, services, and software for the production of semiconductors worldwide has issued a warning that a cyberattack on one of its suppliers may cost it $250 million in second-quarter sales.

A cybersecurity incident that was just reported by one of the company suppliers has a negative projected impact of $250 million dollars. A ransomware assault, according to the supplier, would cause it to postpone the publication of its quarterly results.

After becoming aware of the ransomware attack that exposed private employee data to an unauthorized party, the supplier reported a data breach on February 16, 2023.

According to the supplier, the company’s ability to process orders, ship products, and provide customer service to customers has been affected by the attack. The exact amount of the expenses and associated effects of this event and the degree to which the business’ cybersecurity insurance may partially cover these losses are still unknown. Additional information regarding the attack is still being withheld.

Supply chain effects: The risks of getting infected through your supply chain.

This incident demonstrates that an assault on one of your suppliers may have a substantial financial impact on your company, even if none of your systems are compromised.
In essence, a supply chain assault is an additional means for attackers to access their target business. Instead of going after their target directly, they target the weakest link in their supply chain, typically a vendor with less robust security measures than their primary target.

Chip equipment industry

There is never a good time for a ransomware assault, but this one comes at a terrible time. Certain semiconductors, or chips, have faced the most severe component shortages in recent years.

The semiconductor manufacturing equipment market is a unique case. A few companies dominate the worldwide market in this highly specialized and sensitive industry. In such a market, the inactivity of a key supplier who cannot be quickly replaced might have a significant influence on your outcomes. as seen in this instance.


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