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Attack shows the vulnerability of the semiconductor supply chain.
The U.S. electronics manufacturer Data I/O had important operational systems disrupted by a ransomware attack.
According to The Record, the attack began on August 16th with it impacting manufacturing, production, shipping, and other support functions.
Immediate system takedowns and other key measures have been adopted by Data I/O to prevent the compromise of its global IT network, according to the firm’s filing with the Securities and Exchange Commission. However, Data I/O has provided neither a timeline for total service restoration nor notifications to impacted individuals amid a pending external probe into the incident.
Commenting, Trevor Dearing, director of critical infrastructure at Illumio, said it’s easy to focus on the initial shutdown of operations, but attacks such as the one on Data I/O show the long-term impact of ransomware.
“Given the geopolitics surrounding the chip industry and its high-profile customers, Data I/O is an attractive target for cyber-criminals,” he said. “With shipping delayed, the attack affects not only Data I/O, but also the tech giants that rely on their chips to build their products.
“By hitting critical systems, attackers drive faster payouts and cause deeper damage than traditional data breaches ever did. Ransomware now brings massive downtime, reputational harm, and financial loss. For manufacturers, the only real defence is to prioritise operational resilience and adopt controls that contain an attack and prevent access to their most vital systems.”
Andrew Lintell, General Manager EMEA at Claroty, said this attack is a reminder of how vulnerable the semiconductor supply chain has become, as it remains fundamental to global manufacturing.
“Chip programming is vital for everything from cars to smartphones, so one single disruption will ripple across multiple industries,” he said. “Attackers increasingly exploit weaker suppliers to hit bigger targets. In chip manufacturing, the risks are amplified by the convergence of IT and OT systems. Previously isolated programming and control tools are now connected to vast cloud platforms and smart factories, creating new entry points for ransomware groups.”
Written by
Dan Raywood is a B2B journalist with 25 years of experience, including covering cybersecurity for the past 17 years. He has extensively covered topics from Advanced Persistent Threats and nation-state hackers to major data breaches and regulatory changes.
He has spoken at events including 44CON, Infosecurity Europe, RANT Forum, BSides Scotland, Steelcon and the National Cyber Security Show.
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