TSMC Denies LockBit Ransomware Group’s Claim of Hacking, Ensures Secure Operations and Supplier Collaboration

TSMC, the world’s largest chip manufacturer, has responded to recent claims made by the LockBit ransomware group regarding a hacking incident. While LockBit alleges that they successfully breached TSMC’s systems, the chip giant clarifies that only one of its suppliers, Kinmax Technology, experienced a cybersecurity incident. TSMC affirms that this incident has not impacted its business operations or compromised any customer information. This article provides a detailed account of the incident, TSMC’s response, and the steps taken to bolster security measures amidst an evolving cyber threat landscape.

Dismissing LockBit Ransomware Group’s Claim

TSMC firmly denies the assertion made by the LockBit ransomware group that they have successfully hacked the company’s infrastructure. The chip manufacturer clarifies that the cyber incident was limited to one of its suppliers, Kinmax Technology.

Extended Deadline for Response

Initially, TSMC provided a seven-day deadline for a response following the cybersecurity incident. However, considering the magnitude of the breach and the investigations involved, TSMC has extended the response deadline to August 6th.

TSMC Acknowledges Cybersecurity Incident

TSMC acknowledges that it was recently informed of a cybersecurity incident that impacted one of its IT hardware suppliers. Kinmax Technology, a Taiwan-based systems integrator specializing in various IT services, fell victim to a breach affecting their internal testing environment.

Business Operations and Customer Information Unaffected

TSMC reassures its stakeholders that the cybersecurity incident has not disrupted its business operations nor compromised any customer information. The breach at Kinmax Technology did not directly breach TSMC’s systems but instead compromised information related to initial server setup and configuration provided by the supplier.

Data Exchange and Supplier Security Focus

In response to the incident, TSMC has terminated its data exchange with Kinmax Technology, the affected supplier. The chip manufacturer is committed to enhancing security awareness among its suppliers and collaborating closely to mitigate potential vulnerabilities.

Kinmax Technology’s Role and Breach Discovery

Kinmax Technology, a trusted systems integrator for TSMC, specializes in networking, cloud computing, storage, security, and database management. On June 29th, Kinmax discovered the breach in its internal testing environment, leading to the leakage of certain information.

Content of Leaked Information

The leaked content primarily consisted of system installation preparations and default configurations provided by Kinmax to its customers. While this incident is concerning, it does not pose an immediate threat to TSMC’s technology infrastructure or sensitive customer data.

Apologies and Enhanced Security Measures by Kinmax

Expressing sincere apologies to the affected customers, Kinmax Technology has swiftly implemented enhanced security measures to prevent similar breaches in the future. The company emphasizes its commitment to maintaining the highest standards of data protection and cybersecurity.

Reflection on Past Disruptions

TSMC faced disruptions in its factories in 2018 when the infamous WannaCry malware swept through many systems worldwide. This event highlighted the urgent need for the chip manufacturer to continuously strengthen its security protocols and leverage best practices to safeguard operations against evolving cyber threats.

TSMC’s denial of the LockBit ransomware group’s claim brings clarity to the recent hacking incident. By addressing the breach promptly and severing data exchange with the affected supplier, TSMC has demonstrated its commitment to protecting its business operations and customer information. The incident serves as a reminder of the ongoing battle against cyber threats, prompting TSMC and its suppliers to remain vigilant and proactive in implementing robust security measures to safeguard the semiconductor industry’s critical infrastructure.

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