As global semiconductor supply chains become more complex and targeted by state-sponsored cyberattacks, industry experts highlight the urgent need for enhanced cyber resilience strategies to safeguard critical technology and national security.
The semiconductor industry stands as the vital linchpin of modern technology, underpinning everything from smartphones and electric vehicles to AI supercomputers and military defence systems. Yet, as the sophistication and globalisation of semiconductor supply chains have increased, so too has their vulnerability to cyberattacks. Recent incidents show how the risks have escalated from theoretical concerns to real threats against national security, corporate intellectual property, and critical global supply chains.
Traditional cybersecurity approaches focused largely on preventing breaches. However, industry experts now stress the strategic importance of cyber resilience—the capability not only to anticipate and withstand attacks but also to recover rapidly and adapt to evolving threats. This shift is essential for semiconductor companies, given the highly fragmented and global nature of chip production: design often occurs in the US, manufacturing in Taiwan, packaging in Malaysia, and assembly in Europe. Each handoff point presents opportunities for potential compromise.
State-sponsored cyber threats loom large in this landscape. Semiconductors are recognised as strategic resources, making chip intellectual property (IP) and manufacturing expertise prime targets for espionage and sabotage. Past high-profile incidents underline these vulnerabilities: in 2021, a major Electronic Design Automation (EDA) software vendor was breached, allowing attackers to surreptitiously alter chip designs at a microscopic level. This forced downstream customers to recall products and caused considerable market damage. Similarly, a leading Asian semiconductor foundry suffered a ransomware attack that halted production for nearly a week and threatened to leak sensitive design data to competitors, delaying product launches for global technology firms.
In 2025, intelligence and cybersecurity firms have disclosed intensified cyber-espionage campaigns attributed to Chinese state-sponsored groups targeting Taiwan’s semiconductor industry—a crucial hub in the global chip supply chain. These operations, unfolding between March and June, employed spear-phishing tactics to deploy malware such as Cobalt Strike and custom backdoors like Voldemort and HealthKick. At least 15 to 20 semiconductor companies, including design firms, manufacturers, logistics partners, and financial analysts focused on the sector, were targeted. Smaller companies within the supply chain were often used as initial points of entry, highlighting supply chain vulnerabilities. While major Taiwanese chipmakers such as TSMC, MediaTek, and UMC have not confirmed data breaches, the surge in attacks underscores the sector’s exposure to complex state-sponsored threats seeking trade secrets and technical intelligence amid geopolitical and trade tensions.
The broader geopolitical backdrop further intensifies the cybersecurity challenge. US export controls, introduced in 2022 and supported by Japan and the Netherlands in 2023, aim to restrict China’s access to advanced chip technology and equipment. China has responded aggressively, blocking mergers with US semiconductor companies, banning key American chips from critical infrastructure, and limiting exports of vital semiconductor materials. This geopolitical tug-of-war has been accompanied by heightened cyber espionage and an aggressive push by China to build a self-sufficient semiconductor supply chain, often through illicit means.
Aside from cyberattacks on production and design, concerns have also been raised about hardware backdoors. For instance, China’s Cyberspace Administration summoned Nvidia over alleged ‘security issues’ in its H20 AI chips sold to China, accusing the company of embedding location tracking and remote shutdown features, which Nvidia denies. This incident highlights the increasing mistrust and risks associated with semiconductor supply chains as strategic assets in a globalised tech economy.
To address these escalating threats, semiconductor companies and policymakers advocate for robust cyber resilience strategies comprising several pillars. These include deploying Zero Trust Architectures that enforce strict identity verification across the supply chain and micro-segment environments to contain breaches; enhancing supply chain assurance through third-party audits, tamper-proof packaging, and blockchain tracking to guarantee component provenance; and implementing resilient manufacturing processes that minimise operational disruptions.
Furthermore, effective incident response and business continuity plans involving coordinated drills across design, foundry, and logistics teams ensure rapid recovery when breaches occur. Cultivating a secure-by-design culture, integrating security at every stage of the chip lifecycle—from RTL coding through packaging—is essential. This requires close collaboration between design engineers, cybersecurity experts, and supply chain managers.
Cyber resilience is evolving beyond mere regulatory compliance with frameworks such as the EU Cybersecurity Act, the US CHIPS and Science Act, and India’s DPDP Act. Forward-looking semiconductor firms recognise it as a differentiator that can build customer trust through faster recovery, protect valuable IP to preserve innovation speed, and maintain a resilient reputation valued by investors and customers alike.
Industry-wide collaboration is critical since no single company can secure the ecosystem alone. Prompt threat intelligence sharing between partners and even competitors can prevent cascading breaches. Governments and industry leaders must advance public-private partnerships to protect strategic manufacturing capabilities and establish sector-wide resilience standards.
Ultimately, the semiconductor industry cannot afford to view cyber resilience as a luxury but must embrace it as an operational imperative and a “life skill.” Success in the increasingly complex, hazardous digital frontier will be determined by those ecosystems capable not only of embedding security deeply at every stage but also organising collective resilience across the entire global value chain. In this way, cyber resilience becomes not just risk mitigation but a strategic asset underpinning the future of technology, national security, and economic competitiveness.
Source: Noah Wire Services
