Cybersecurity at Risk: Outdated Legacy Systems Troubles Semiconductor Manufacturers

Cybersecurity risks are one of the urgent issues facing the semiconductor industry. Due to the complexity of the supply chains, security regulations, and frameworks are still in development. Outdated legacy systems in the semiconductor industry pose substantial security risks and are often overlooked, potentially leading to severe consequences.?

According to Gartner, it is one of the most targeted sectors for cybercriminals. In 2018, around 39% of surveyed businesses experienced data breaches.? ?

Outdated legacy systems is not just a simple IT problem but a larger-scale issue revolving around cybersecurity governance. Business equipment in the supply chain and operational silos failing to meet cybersecurity standards are also some reasons contributing to the data breaches.?

In this blog, we will deep dive into the rise of cybersecurity challenges due to outdated legacy systems. We will also explore some real-life examples of cyberattacks and how migrating legacy systems can help improve the business's security infrastructure.??

Cybersecurity Risks and Outdated Legacy Systems?

Legacy systems are outdated hardware servers and workstations. They are often regarded as the backbone of enterprises and are still prevalent in many sectors. However, these old systems lack robust security features to provide security against modern cyber threats, which makes them vulnerable and prime targets for cybercriminals.?

Here are some reasons that make the semiconductor sector a target of cybercriminals:? ?

Supply Chain Disruptions??

The semiconductor industries play a vital role in the global supply chain, and disrupting their operations can lead to severe consequences, such as delays in product delivery or shortages. It will result in logistic challenges, component shortages, and rising costs.? ?

Intellectual Property (IP) Theft?

The semiconductor sector is highly competitive, and IP is considered valuable. Cybercriminals can gain unauthorized access to a business's network and data by stealing IPs. Stolen IP addresses are also sold in black markets or used by competitors to gain an unfair advantage.?

Ransomware Attacks??

Due to their critical operations, semiconductor manufacturers are often targets of ransomware attacks. Cybercriminals encrypt companies' data and demand a ransom to decrypt it. Semiconductor manufacturers are vulnerable due to extended downtime, which can lead to supply chain disruptions and financial loss.? ?

The outdated legacy systems worsen these risks by providing a more accessible entry point for cybercriminals due to their poor security posture, which they can easily exploit.? ?

Real-World Examples of Cyberattacks on the Semiconductor Industry?

Many of the world's leading semiconductor organizations have faced cyberattacks, other malicious activities, and extortion attempts in recent years. Here are some high-profile cyberattacks within the semiconductor industry.? ?

• Taiwan Semiconductor Manufacturing Company (TSMC): TSMC is one of the largest semiconductor manufacturers and was hit with a WannaCry ransomware attack in 2018. The malware infected many of its production plants, resulting in delays and financial loss.? ?

• Micron Technology IP Theft: Cybercriminals targeted Micron technology to steal valuable IPs related to memory chip designs. This attack leveraged outdated legacy vulnerabilities to gain unauthorized access to the organization's network.? ?

• NXP Semiconductors: NXP Semiconductors is one of the renowned names in the automotive chip market. In 2020, it suffered a massive data breach that exposed employees' information. Later, an investigation showed that the attack resulted from the aging HR legacy systems that lacked robust security measures.? ?

• ASML Holdings: ASML is one of the leading semiconductor equipment suppliers. In 2021, cybercriminals targeted it for its IP.? ?

Also, in 2022, according to a report from the Recorded Future, semiconductor giants like AMD, NVIDIA, Samsung, Semikron, Etron Technology, and more faced somewhere around eight different cyberattacks. Five of these cyberattacks involved ransomware from LV, Cuba, and LockBit gangs, while other extortion groups like RansomHouse and Lapsus$ carried out the other three. These attacks on the semiconductor industry became a concern for national security for many countries.?

These cybersecurity incidents can lead to severe consequences. They disrupt production, cause monetary loss, and sometimes lead to non-compliance due to sensitive data leaks, which may result in hefty fines and penalties. Therefore, it is the need of the hour to work on the migration of legacy systems as they pose cybersecurity risks. ? ?

Cybersecurity Challenges Due to Outdated Legacy Systems?

Outdated legacy systems pose significant security risks and hinder productivity if not maintained and appropriately secured. It is a critical issue but often neglected, leading to vulnerable legacy systems reaching their end-of-life. Without proper security updates, it can result in potential catastrophic implications.? ?

Here are some security challenges in outdated legacy systems that can impact the overall security infrastructure of the semiconductor manufacturing industry:? ?

Lacking the Vendor Support??

Most legacy hardware runs on outdated versions of operating systems (OS) that their vendors no longer support. It means there will be no security updates and patches, making it vulnerable to cyber-attacks.? ?

Incompatibility with Modern Solutions??

Many legacy systems are not compatible with the latest security solutions. It limits their ability to create a robust, secure infrastructure and creates blind spots, which makes them susceptible to cyber threats.? ?

Limited Threat Detection?

The older systems lack advanced threat detection technologies, such as comprehensive monitoring, which makes it challenging to identify and respond immediately to sophisticated cybersecurity incidents.? ?

Non-Compliance?

Outdated legacy systems may not meet regulatory guidelines, as they are vulnerable to data risks and leaks which can lead to potential sensitive data exposure, resulting in non-compliance and leading to legal and financial risks.? ?

Downtime?

Aging legacy can cause downtime, which leads to poor performance issues like a shortage in production and ultimately, a financial burden.? ?

Large Attack Surface?

The legacy systems expand the business's attack surface by providing the cybercriminals with more vulnerable entry points to exploit in the network.? ?

Lack of Skilled Professionals??

As technology evolves, fewer IT experts have the specialized skills and knowledge to manage and secure legacy systems.? ?

Costly Upgrades??

It can be extremely expensive to completely replace or upgrade legacy systems. This process can also be very tedious and complex. Businesses postpone the necessary updates, which leaves system vulnerabilities unaddressed and open to exploitation.? ?

These challenges can collectively weaken the security infrastructure, making the security of semiconductor manufacturers more susceptible to cyber threats and risks.? ?

Why Does Migration of Legacy Systems Mitigate Security Risks??

If not maintained, legacy systems can cause security issues and poor performance. When manufacturers stop providing support for outdated legacy systems, security vulnerabilities are exposed, making it easy for cybercriminals to gain unauthorized access to the organization's network.? ?

Legacy systems were once the driving force of the business but with time, the technologies advance; it lacks the ability of the modern solutions that are essential for robust security ecosystem and compliance, which results in data silos and interfering with the insightful decision-making process.? ?

Non-compliance with privacy regulations like GDPR (General Data Protection Regulation), CCPA (California Consumer Privacy Act), and more can result in hefty fines and penalties. In today's digital environment, nearly everything is interconnected, and Legacy systems often struggle to meet the demands of evolving compliance standards, which puts businesses at risk of regulatory violations and data breaches.? ?

Benefits of Migration of Legacy Systems??

Migration of legacy systems to a modern platform can mitigate the risks associated with it and secure the infrastructure. Here are numerous benefits of migrating outdated legacy:? ?

• Robust Security Infrastructure: Modern platforms have advanced security capabilities like access controls and automated patch management.? ?

• Compatibility and Integration: Modern platforms are compatible with the latest security technologies and tools. They easily integrate with other security solutions, offering enhanced security ecosystem for overall infrastructure.?
• Regular Security Updates and Patches: New platforms have ongoing support from vendors, which means timely security updates and vulnerability patches to maintain a robust security environment.? ?

• Regulatory Compliance: The updated platforms are designed to comply with current regulations and guidelines, thus ensuring compliance, which will ultimately reduce the risks of legal penalties and hefty fines.? ?

• Scalability and Reliability: Modern platforms are reliable and scalable as they can easily integrate with the latest advanced technologies. These updated systems will enhance performance while complying with the semiconductor industry's growing demands. This increased efficiency will indirectly reduce IT workloads.? ?

• Cost-Effective: Transformation of aging legacy results in long-term savings, as maintenance costs will no longer be required. Also, additional expenses due to downtime will be minimized, resulting in increased operational efficiency.? ?

Stromasys: A Solution for Legacy System Challenges?

Stromasys is one of the world's leading providers of emulation and virtualization solutions for outdated legacy systems like DEC Alpha, VAX, SPARC, PDP, and PA-RISC. Its Charon emulation solution creates a virtual replica of the original environment. It allows the business to run critical legacy applications on modern, secure infrastructure without extensive redevelopment.?

The benefits of partnering with Stromasys for migration of outdated legacy systems are:? ?

• Minimizes Additional Expense: Stromasys's Charon emulation solutions resolve the issue of expensive maintenance costs associated with the aging legacy, along with additional operation costs, making it a cost-effective solution.? ?

• Extends the Lifespan: By emulating the legacy, the lifespan is extended, which means businesses can continue to operate seamlessly using modern technologies.? ?

• Enhanced Security: By emulating the aging legacy on a modern platform, businesses can leverage advanced security features and secure the infrastructure against cybersecurity risks and vulnerabilities.? ?

• Reduced Downtime: Legacy applications can now seamlessly operate, reducing the downtime that previously occurred due to outdated systems, resulting in improved performance.? ?

With Stromasys, semiconductor manufacturers will enhance their businesses' security posture, minimize downtime, manage their budgets, and improve overall operational efficiency. ? ?

Key Takeaways?

Due to its critical involvement in the global supply chain, the semiconductor industry is increasingly becoming the target of cybercriminals. However, outdated legacy systems make it more vulnerable to cyber risks and threats by providing easy entry points. By migrating these legacy systems, semiconductor manufacturers will not only improve their security infrastructure but also secure sensitive intellectual property (IP). By embracing the modern environment, businesses address security challenges and are prepared to handle potential security risks.??