Cyberattacks On Semiconductor Sector Surge Six-Fold, AI-Generated ‘Implants’ Can Wreak Havoc: Report
Dangerously, AI can be harnessed to design and embed hardware Trojans at the pre-design stage of a chip.
There is a rapidly escalating cyber threat landscape targeting the semiconductor sector — the digital backbone of modern industries. According to a recent report by cybersecurity company CloudSEK, nation-state-backed groups, ransomware operators, and hacktivists are waging a silent but highly coordinated cyber war against the semiconductor industry.
Cyberattacks on the sector have risen six-fold since 2022, driven by espionage, supply-chain compromises, and state-sponsored campaigns. The total ransomware-related losses since 2018 amount to $1.05 billion, including ransom payments, downtime, and recovery costs, as per the report.
Over 60% of Industrial control systems (ICS) breaches begin with information technology (phishing, VPN exploits, vulnerabilities, exposed interfaces, default or leaked/compromised credentials, etc.) before moving to operational technology.
Dangerously, AI can be harnessed to design and embed hardware Trojans at the pre-design stage of a chip. Even a simple AI-generated implant can evade detection and, once manufactured, lie dormant for years until triggered — leaking sensitive data, falsifying outputs, or halting operations.
Massive Infrastructure Exposure And High-Value Espionage
According to CloudSEK, the US has around 2 million publicly reachable ICS assets linked to semiconductor operations, many potentially with weak or default controls.
Across the Middle East, publicly reachable ICS and OT assets tied to semiconductor-linked manufacturing and potentially critical oil, gas, and industrial operations remain exposed: UAE (approx. 12.1K), Turkey (approx. 10.8K), Saudi Arabia (approx. 4.8K), Iran (approx. 4.6K), Bahrain (approx. 2.4K), and Qatar (approx. 400).
In July 2025, China-backed APT41 infiltrated multiple Taiwanese semiconductor companies via a compromised software update, stealing proprietary chip designs and process data, the report noted. Among other recent attacks include UNC5221 VPN exploitation (2025), Medusa ransomware campaigns (2021–2025), infostealer malware targeting defence contractors (February 2025), microchip technology breach (August 2024), and Aliquippa Water Authority breach (November 2023).
Emerging Threat Patterns
As per CloudSEK, emerging threat patterns include:
Supply Chain Attacks: Targeting trusted vendors, software updates, and outsourced design services.
Pre-Silicon Design Compromise: Embedding hardware Trojans directly into chip designs during the design phase, remaining dormant and undetectable until after manufacturing.
Ransomware With IP Extortion: Exfiltrating proprietary designs to pressure payments from both chipmakers and dependent industries.
“Semiconductors are the new oil — and the new high ground in geopolitical conflict. These attacks don’t just threaten a company’s bottom line; they can disrupt national economies, weaken defence readiness, and shift global technological leadership,” said Ibrahim Saify, security analyst, CloudSEK.
