Ransomware attack on semiconductor giant Applied Materials’ supplier will cost $250 million

Multibillion-dollar American company Applied Materials, which develops technology for the semiconductor sector, revealed that a ransomware attack on one of its suppliers would cost it $250 million in the upcoming quarter.

Gary Dickerson, the chief executive officer of Applied Materials, revealed at a conference during an earnings call that one of the company’s major suppliers recently experienced a disruption that will affect its shipments in the second quarter.

Applied Materials’ earnings report release expects net sales for the second quarter of 2023 to be around $6.40 billion, despite ongoing supply chain issues and a 250 million estimated negative impact from a cybersecurity incident recently disclosed by one of its suppliers.

Although the company did not say which supplier it was referencing, several industry analysts said it was technology and engineering company MKS Instruments, which announced that it was forced to reschedule its fourth-quarter earnings call owing to a ransomware attack discovered on February 3. The company, however, did not respond to requests for comment confirming that MKS Instruments is the supplier.

Meanwhile, MKS Instruments stated it is still in the “recovery phase” following the alleged ransomware attack. It is working hard to restore operations at affected facilities. The ransomware incident had a material impact on the company’s ability to process orders, ship products, and provide service to customers in the Vacuum Solutions and Photonics Solutions Divisions in the first quarter, according to the company.

MKS also stated that it is unsure of the full scope of the costs and consequences of the ransomware incident. The company is also unsure whether its cyber insurance will cover some of the costs associated with the attack. No ransomware group had publicly claimed responsibility for the MKS attack.