Cybersecurity in Electronics Supply Chain: Protect Your Data

Cybersecurity in the Electronics Supply Chain: A Growing Threat

Cybercrime has become a pervasive issue affecting every industry worldwide. The motives for these cyberattacks are varied, from financial gain to stealing valuable corporate data. However, the electronics supply chain is particularly vulnerable, making cybersecurity a critical concern for manufacturers, suppliers, and businesses in this sector.

Case Study: The Unimicron Cyberattack

One stark example of this threat occurred in February 2025, when Unimicron, a major printed circuit board (PCB) manufacturer based in Taiwan, was targeted by the notorious Sarcoma ransomware operation. This attack resulted in the cybercriminals gaining access to sensitive corporate data, including 377GB of SQL files and internal documents. They threatened to leak the data unless a ransom was paid. This attack is part of a wider trend of ransomware operations targeting global manufacturers and technology companies, with Sarcoma being linked to 83 cyberattacks between July 2024 and March 2025 (Figure 1).

Figure 1 : Sarcoma has targeted organizations worldwide with ransomware attacks, including manufacturing and technology companies. So far, the attacks have been concentrated in North America and Europe. (Image source: Ransomware.live)Source: Gartner

Source: Ransomware.live

The Growing Financial Impact of Cybercrime

Cybercrime is not just a technical problem—it’s an economic one. According to a 2025 report by Cybersecurity Ventures, the global cost of cybercrime is expected to reach $10.5 trillion annually in 2025, up from $3 trillion in 2015.

The cost of data breaches has also risen dramatically. IBM estimates that the average cost of a cybersecurity breach now stands at $4.88 million. This figure doesn’t include the soft costs, such as brand damage and lost customer trust, which can be far more damaging than the immediate financial loss.

The Main Drivers of Rising Cybercrime

• Increasing Dependency on Software: More companies, especially in the electronics industry, are moving towards third-party and open-source software, which can leave gaps in security that hackers can exploit.

• Remote and Hybrid Work Environments: With more workers operating remotely or in hybrid settings, there are more entry points for cybercriminals, increasing vulnerabilities.

• Rise of IoT and Cloud Infrastructure: While IoT devices and cloud services offer numerous benefits, they also provide additional entry points for cyberattacks.

• Sophisticated Attack Methods: Nation-state-sponsored cybercriminals and ransomware groups are employing increasingly advanced techniques to target organizations across the globe.

Figure 2: Surge in Malicious Components in Open-Source Software. This graph shows the rise in malicious components found in open-source dependencies, illustrating the increasing risk from third-party software vulnerabilities.Source: Gartner

How to Safeguard Your Electronics Supply Chain

As cybercriminals become more sophisticated, businesses must enhance their cybersecurity measures. Here are four key strategies to help organizations mitigate risks and protect their data:

1. Regular Security Audits and Penetration Testing

It’s crucial to regularly audit your cybersecurity posture. Penetration testing, often conducted by ethical hackers, helps identify vulnerabilities before malicious actors can exploit them.

2. Invest in Cybersecurity Insurance

While the cost of cybersecurity insurance may seem like an unnecessary expense, it is relatively small compared to the potential costs of a breach. In 2024, businesses spent between $1,200 to $7,000 annually on cybersecurity insurance, which covers legal fees, lost revenue, and other costs associated with a breach.

3. Backup Your Systems Regularly

Ensuring that both digital and physical documents are backed up and secure is a fundamental step. Implementing data encryption and secure backups can help protect against ransomware attacks.

4. Educate Your Workforce

Cybersecurity awareness training for employees is vital. Whether working remotely or on-site, employees should be educated on the importance of phishing protection, password hygiene, and network security best practices.

Cybersecurity Risks and the Electronics Supply Chain

In today’s globalized world, the electronics supply chain is interconnected, making it particularly vulnerable to cyberattacks. From component suppliers to OEMs (Original Equipment Manufacturers), all players in the chain need to prioritize cybersecurity to protect sensitive information and ensure business continuity.

Common Cybersecurity Questions in the Electronics Industry

1. What is ransomware?

   • Ransomware is a type of malware that locks a victim’s data and demands payment for its release. This type of cyberattack is becoming increasingly common in industries like electronics manufacturing.

2. How can I protect my company from ransomware?

   • Regularly update software, perform security audits, and educate employees on phishing threats. Additionally, ensure that all data is encrypted and backed up regularly.

3. Why is cybersecurity insurance important?

   • Cybersecurity insurance helps organizations recover financially after a data breach, covering costs like legal fees, lost productivity, and reputational damage.

4. How can I mitigate risks from third-party software?

   • Implement rigorous vetting procedures for all third-party software and ensure that any open-source components are regularly updated and monitored for vulnerabilities.

The Future of Cybersecurity in Electronics

As the electronics supply chain becomes more digitized, the risk of cyberattacks will continue to grow. However, with proactive security measures, regular risk assessments, and a strong cybersecurity strategy, organizations can protect themselves from costly data breaches and the associated risks.

Conclusion

The growing threat of cybercrime requires urgent action from all organizations within the electronics supply chain. Cybersecurity is not just an IT issue but a business imperative that affects all aspects of a company, from its reputation to its bottom line. By implementing robust security measures and staying ahead of evolving threats, businesses can protect their data, customers, and reputation in an increasingly risky digital world.