On Sunday September 6 Tower disclosed it had experienced a “cyber event” and said it had closed down some computer systems and halted some manufacturing operations as a result. It also said it was working with law enforcement organizations and insurance providers.

The Israel newspaper Calcalist has now reported that Tower is set to pay hundreds of thousands of dollars to hackers who have “paralyzed its manufacturing.” The account references an unnamed source who it said was familiar with the matter but spoke on condition of anonymity.

Tower’s insurance covers cyber attacks and will cover Tower’s costs, the report said.

A spokesperson for Tower Semiconductor told eeNews Europe the Calcalist’s report was speculation and provided no further information.

The largest element of the costs Tower may incur could be for lost wafer production and the potential replacement and reconfigurations of computer systems, process control units and software.

One expert at a cyber security firm had previously told the Israeli newspaper he thought Tower had been the victim of a ransom attack that was not specifically directed at it alone but one directed at multiple companies.

It is thought that moves by executives to working from home due to the Covid-19 pandemic may have increased vulnerabilities to cyber attacks.

Related links and articles:

Calcalist report

News articles:

Cyber attack causes Tower to halt chip operations

US considers targeting SMIC with trade embargo

Researchers compromise secure Siemens PLC in cyberattack

Updated: Swiss researchers show Visa bank cards are insecure

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