Tower Semiconductor Expects Cyber Attack to Hit Q3 Results
Tower Semiconductor is warning investors that a cyber attack will negatively impact their Q3 financial results. Getting hacked is expensive in every possible way.
The Israeli chip manufacturer disclosed the attack and its expected impact on production. Semiconductor companies are attractive targets given supply chain importance and intellectual property value.
Reuters reported on the disclosure and analyst reactions.
Cyber attacks on manufacturing facilities can halt production entirely. Unlike software companies that can recover quickly physical production depends on systems being operational.
Technology security is an increasingly critical business function. The costs of failure extend far beyond immediate damages.
Tower Semiconductor makes chips for various applications including automotive and industrial uses. Any production disruption ripples through supply chains already strained by pandemic-related demand.
The company didnt disclose specifics about the attack type or who was responsible. That information may never be public depending on the investigation.
Investors hate uncertainty which is why the stock reacted negatively to the disclosure. The actual financial impact will become clear when Q3 numbers are reported.
Disclosure September 2020
