[News](/news) Supply Chain Ransomware Attack Impacts Semiconductor Manufacturer [Blog](/blog)[Breaches](/breaches)[Resources](/resources)[News](/news) # Supply Chain Ransomware Attack Impacts Semiconductor Manufacturer ##### [Edward Kost](/team/edward-kost) February 26, 2023 [Applied Materials](https://www.upguard.com/security-report/appliedmaterials), one of the world's largest manufacturers of semiconductors has attributed a potential $250 million loss in its second-quarter [sales report](https://ir.appliedmaterials.com/news-releases/news-release-details/applied-materials-announces-first-quarter-2023-results) to a supply chain attack. > "In the second quarter of fiscal 2023, Applied expects net sales to be approximately $6.40 billion, plus or minus $400 million, which includes ongoing supply chain challenges and a negative estimated impact of $250 million dollars related to a cybersecurity event recently announced by one of our suppliers. Non-GAAP adjusted diluted EPS is expected to be in the range of $1.66 to $2.02."\ > \ > News Release - Applied Materials Though the compromised supplier hasn't been named, it's speculated to be MKS Instruments Inc - a manufacturer of semiconductor components. Shortly after, [MKS Instruments, one of Applied Materials' largest suppliers, announced](https://investor.mks.com/news-releases/news-release-details/mks-reschedules-fourth-quarter-and-full-year-2022-earnings-call) that it had fallen victim to a ransomware attack, delaying the release of its financial results. MKS Instruments reported that their Vacuum Solutions and Photonics Solutions Divisions were impacted, which could delay the shipping and processing of worldwide orders. The company plans to reveal more news on its rescheduled February 28 earnings call. > "MKS Instruments, Inc. (NASDAQ: MKSI), a global provider of enabling technologies that transform our world, today reported that due to the ransomware event that was identified on February 3, 2023, the Company now plans to release fourth quarter and full year 2022 financial results after market close on Monday, February 27, 2023."\ > \ > News Release - MSK Instruments, Inc. ‍ MKS Instruments also announced that the full scope and impact of this incident hasn't been determined - a statement verified by the unavailability of its website, which, at the time of writing this, is unavailable due to an *unscheduled outage.* In the thick of a[ global semiconductor shortage](https://www.jabil.com/blog/global-chip-shortages.html), this ransomware attack couldn't have occurred at a worse time. Cybercriminals likely intentionally targeted MKS Instruments to leverage the resulting global supply chain chaos in their extortion efforts. In 2022, the share of data breaches caused by ransomware attacks[ increased by 41%](https://www.ibm.com/reports/data-breach), and supply chain attacks [surpassed the number of malware-based attacks by 40%](https://www.helpnetsecurity.com/2023/01/26/data-compromises-2022/#:~:text=However%2C%20in%202022%2C%20supply%20chain%20attacks%20surpassed%20the%20number%20of%20malware%2Dbased%20attacks%20by%2040%25.). These malicious threats are difficult to defend against separately, but as the Applied Materials incident demonstrates, it's imperative to prepare for both striking simultaneously. ‍ To learn how to defend against supply chain attacks and ransomware attacks, refer to these free resources: * [The Ultimate Ransomware Attack Defence Guide for 2023](https://www.upguard.com/blog/protecting-employee-credentials-from-ransomware-compromise) * [11 Ways to Prevent Supply Chain Attacks in 2023.](https://www.upguard.com/blog/how-to-prevent-supply-chain-attacks) * [How to Prevent Ransomware Attacks: Top 10 Best Practices](https://www.upguard.com/blog/best-practices-to-prevent-ransomware-attacks)\ ‍ ## How secure is Applied Materials? Applied Materials manufactures equipment, services, and software used in the production of semiconductor chips and advanced displays. The company provides solutions for materials engineering across the electronics manufacturing supply chain, serving customers in the semiconductor and display industries. * View our free preliminary report on Applied Materials’s security posture * 13 risk factors, including email security, SSL, DNS health, open ports and common vulnerabilities [View Applied Materials's score](/security-report/appliedmaterials) [View score](/security-report/appliedmaterials) [https://www.appliedmaterials.com](/security-report/appliedmaterials) ### Sign up for our newsletter UpGuard's monthly newsletter cuts through the noise and brings you what matters most: our breaking research, in-depth analysis of emerging threats, and actionable strategic insights. ## Latest news Stay up-to-date with the latest news in cybersecurity. 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