Semiconductor firms are appealing targets due to the high value of their intellectual property (IP), sensitive manufacturing processes, and their critical role in global supply chains. The complexity and precision involved in chip manufacturing mean that any disruption — whether through data theft, ransomware, or system sabotage — can have far-reaching consequences, impacting not just the firms themselves but also the industries that depend on their products.

“If the cyber threats on semiconductor companies persist, they could lead to a smaller second wave of semiconductor disruption depending upon which vendor is being affected and its exposure to different industries,” added Shah. “This calls for investing in more resilient processes and systems, including consistent audits, whitelisting of software, and systems to avoid such sophisticated attacks.”

In recent years, several high-profile cyberattacks have highlighted the vulnerability of the semiconductor sector. In 2022, Nvidia faced a significant ransomware attack that exposed sensitive employee data and proprietary information. This year, TSMC, the world’s largest contract chipmaker, also fell victim to a ransomware attack that temporarily disrupted its operations. Similarly, Nexperia and AMD have reported breaches, further underscoring the sector’s growing exposure to cyber threats.