Sixfold Surge in Cyberattacks and $1B in Losses Put Global Semiconductor Industry on High Alert

A new report from cybersecurity firm CloudSEK has revealed a staggering sixfold increase in cyberattacks targeting the global semiconductor industry since 2022, with over $1.05 billion in ransomware-related losses crippling operations worldwide. The findings paint a stark picture of an escalating “Silicon Cold War,” where state-sponsored hackers, ransomware gangs, and hacktivists are waging a silent but coordinated assault on the digital backbone of modern life.

Semiconductors power everything from AI and defense systems to smartphones, clean energy grids, and medical devices—making them both a strategic asset and a prime target for cyber sabotage. The CloudSEK report, Silicon Under Siege: The Cyber War Reshaping the Global Semiconductor Industry, warns that these attacks could disrupt supply chains, destabilize economies, and compromise critical infrastructure at a scale never seen before.

AI-Driven Hardware Trojans: The New Invisible Threat

CloudSEK’s proof-of-concept demonstrated how AI-generated hardware Trojans could be embedded at the pre-design stage of chip development. These implants can evade detection for years, lying dormant until triggered to leak data, falsify outputs, or disable operations. Advanced versions could adapt to different architectures and bypass specific security checks, turning chips into tools for espionage or sabotage.

Key Findings from the Report

• Attack volume up 6x since 2022, driven by espionage, supply-chain compromises, and state-backed campaigns.

• $1.05B in ransomware damages since 2018, including downtime and recovery costs.

• IT networks are the main entry point for over 60% of industrial control system (ICS) breaches.

• Massive exposure in critical regions — The U.S. has ~2M publicly reachable ICS assets linked to semiconductor operations; Middle East countries also face significant vulnerabilities.

• High-profile breaches — In July 2025, China-backed APT41 infiltrated Taiwanese chipmakers via a compromised software update, stealing proprietary designs.

Geopolitics Driving Cyber Escalation

The semiconductor race has become a key battleground in global politics:

• China is investing $150B+ to achieve chip self-sufficiency.

• The U.S. is committing $52B through the CHIPS Act to secure domestic production.

• India is pursuing a $10B semiconductor mission.

• Taiwan produces over 60% of advanced chips, making it a critical geopolitical target.

State-backed Advanced Persistent Threats (APTs) are embedding themselves deep within semiconductor supply chains, moving from simple data theft to long-term disruption strategies designed to be activated during geopolitical crises.

“Semiconductors are the new oil — and the high ground in geopolitical conflict,” says Ibrahim Saify, Security Analyst at CloudSEK. “A single compromise can cascade across industries, weaken defense readiness, and shift global technological leadership.”

 

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CloudSEK Recommendations

CloudSEK advises semiconductor companies to:

• Isolate IT and OT networks to prevent lateral movement.

• Implement secure-by-design practices in chip development.

• Monitor attack surfaces continuously for exposed assets and vulnerabilities.

• Enforce strict vendor security requirements.

• Share threat intelligence globally to counter state-sponsored campaigns.

Cyber attacks on Indian healthcare industry second highest in the world: CloudSEK

The CloudSEK report, Silicon Under Siege: The Cyber War Reshaping the Global Semiconductor Industry – With AI-enhanced sabotage now a reality, the semiconductor industry faces a future where cyber risks and cyberattacks are etched into the chips themselves. The race to secure this vital infrastructure may define the next decade of global power.