LockBit Ransomware Gang Demands $70 Million Ransom from TSMC

TSMC, one of the world’s largest chipmakers and a key supplier to Apple, was recently attacked by the LockBit ransomware gang. The hackers demanded a $70 million ransom from the semiconductor firm, threatening to publish data stolen from the company if the ransom was not paid. TSMC confirmed that one of its hardware suppliers, Kinmax Technology, was hacked and had data stolen from it. However, it stated that the incident had no impact on business operations and did not compromise its customers’ data.

TSMC initially denies LockBit ransomware hack

Initially, TSMC denied being hacked by the LockBit ransomware gang. However, the gang claimed TSMC as a victim on Thursday, June 29th, and demanded the $70 million ransom. TSMC later confirmed the data breach after LockBit’s cyberattack on its third-party supplier, Kinmax Technology.

A TSMC spokesman said the cybersecurity incident resulted in a data breach “related to the initial server setup and configuration,” but TSMC customer info was not affected. He said

After TSMC’s review, the network security incident did not affect TSMC’s business operations, nor did it disclose any customer info of TSMC. After the incident, we terminated data exchange with the supplier. This is in accordance with our security protocols and standard operating procedures.

There were no signs that TSMC or Kinmax Technology had any plans to pay the hackers. Representatives from both companies did not respond to questions about any ransom. TSMC was quick to assure investors and the public that the hack had no impact on its operations and that it did not compromise its customers’ data.

LockBit is a ransomware gang that has attacked pharmaceutical companies, the UK’s Royal Mail, U.S. government websites, and more. If TSMC does not pay the $70 million ransom, LockBit has threatened to publish passwords and logins.

Final Words

It is not strange that TSMC is a target for hackers seeking ransom. This is because the company is one of the world’s largest chipmakers. It has some bigwigs in its clientele including Apple. The company do not seem too bothered about the recent attack by LockBit. This is because there is no indication that it is ready to pay the ransom. TSMC confirmed that one of its hardware suppliers, Kinmax Technology, was hacked and had data stolen from it. However, the company said that the stolen data will not impact its business and also does not reveal user data.