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World's Largest Chip Maker Will Lose $250M For Not Patching Windows 7 Computers (networkworld.com) 108

Posted by EditorDavid from the wanna-cry? dept.
A major virus infection forced the closure of Taiwan Semiconductor Manufacturing Company (TSMC) factories last weekend..." writes Slashdot reader Mark Wilson, noting that it's the largest semiconductor manufacturer in the world, selling chips to Apple, Nvidia, AMD, Qualcomm, and Broadcom, and "responsible for producing iPhone processors."

Now Network World reports: The infection struck on Friday, August 3, and affected a number of unpatched Windows 7 computer systems and fab tools over two days. TSMC said it was all back to normal by Monday, August 6. TSMC did not say it was WannaCry, aka WannaCrypt, in its updates, but reportedly blamed WannaCry in follow-up conference calls with the press.... The company said this incident would cause shipment delays and additional costs estimated at 3 percent of third quarter revenue. The company had previously forecast revenues of $8.45 billion to $8.55 billion for its September quarter. A 3 percent loss would mean $250 million, though actual losses may come out lower than that. Still, that's a painful hit. TSMC also said no customer data was compromised....

TSMC isn't directly to blame here; someone [an infected production tool provided by an unidentified vendor] brought WannaCry into their offices and behind their firewall, but TSMC is still culpable because it left systems unpatched more than a year after WannaCry hit.
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World's Largest Chip Maker Will Lose $250M For Not Patching Windows 7 Computers More

World's Largest Chip Maker Will Lose $250M For Not Patching Windows 7 Computers

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  • Yep, that's what you get (Score:3, Insightful)

    by Anonymous Coward on Saturday August 11, 2018 @03:42PM (#57108538)

    for not patching your systems.

    • The problem here us unlikely to be that IT was too lazy to upgrade or unwilling to patch. Quite the opposite is generally the case.

      Vendors that supply process control systems will certify exactly what can and cannot be loaded on these systems including patches. It can take years to get a new patch certified from the vendor. And if you load anything uncertified you are taking on that entire liability hit and lose support and such. That's a career limiting move.

      Oh and Windows 7? Not too bad, There are

      • So what's to do? Would it be possible to have each legacy system run inside a sandbox, VM or VM-lite kind of thing, maybe like Sandboxie for Windows but industrial strength, and you make a copy of the sandboxed image every day. If a virus infects the guest OS, you simply go back a few snapshots. If the virus hasn't wiped or encrypted the application-generated data files, you can restore those from the latest sandbox or snapshot.

        Is there anything obviously missing in this scheme?

        • The most likely result of that line of inquiry is going to be "Must be run on vendor supplied hardware" and "Vendor does not certify to run in a VM."

          Also just to make it more fun, taking it offline to do a backup shuts down a production line and must be scheduled once a quarter or once a year.

          Hmmmmm, "what's to do"

          Probably nothing until manufacturing via 3d printing and general purpose robotics becomes competitive with classical manufacturing. Not because they are better or worse, but more because once yo

          • I imagine with $250M to lose over two days TSMC could easily say Hey Vendor certify your stuff to run in a VM pronto. Vendor would do it, unlike porting their app to Linux. Would they not, realistically?

            As for VM, can you make a correct VM image backup while the VM is running? Seems to me that could be done in the background without affecting production.

        • Re: (Score:2)

          by sjames ( 1099 )

          If it's process control, a VM probably won't do. The software will likely be talking directly to some bit of hardware and any stuttering on the part of a VM passing things through to real hardware would be a problem.

          Best you can do is keep the prosess control machines on an air-gapped LAN and hope it doesn't get cooties if you have to temporarily connect to the outside or connect a laptop fpr updates.

    • "for not patching your systems."

      Perhaps their machines didn't have the chips to upgrade to the latest, greatest Windows version.

      You know, the cobbler's kids are barefoot.

      • Re: (Score:2)

        by rtb61 ( 674572 )

        The problem in reality was not that they did not patch their airgapped system, is they breached airgap by allowing hardware in with software installed, bad mistake. You airgap a system, than thieving is airgapped, including new hardware and they way new hardware is airgapped, is it is supplied free of software. The software comes in separately and is scanned and checked and then installed on the new hardware inside of the airgap, common fucking sense, or at least it should have been.

        Airgap requires that ne

    • Oh come on. This is slashdot where I see IT professionals proudly say they don't patch with a smile.

      I want to say told ya so.

    • Well, that's why I've heard Intel still used VAX/VMS to run their factories until at least recently.

  • Wrong headline (Score:1)

    by Anonymous Coward

    ``World's Largest Chip Maker Will Lose $250M For Using Known-Vulnerable Operating Software''

    The correct conclusion is that windows just isn't suitable to run multi-billion operations with. As long as you ignore that reality, you leave the door open to other parties to take advantage of that.

    • Like in War Games: The only way to Win with Windows, is not to mess with Microsoft.

    • Depends on the price to switch to a system that isn't so insecure.

      Where I work, we tried switching about fifty servers to Linux, but it failed due to the fact we couldn't find people that knew what they were doing for minimum wage. The two high school drop-outs that work for minimum wage do an OK job with keeping those Windows servers running. Windows is acceptable since our customer SLA is 95% so I think we can have almost five hours of downtime a week. Of course we often exceed that amount of downtime

      • Re: (Score:1)

        by Anonymous Coward

        Expert for what? For the most part a linux guy doesn't have to do nearly as much as a windows guy. Windows fellas need to run around like they just crapped themselves 24/7 to keep that big jenga tower of interdependant hack code which is ms windows together.

        Ah you guys know your stuff though. It will all be okay, its not like these systems run operations involving salaries and materials that run into the millions of dollars of cost, nooooooooo, they are just toys that the folks with glasses use, we'll gi

      • Why didn't you assign the project to one of the high school students? If that's their level of competence, you'd be better off with the sane secure defaults on a Linux. It's a learning project for them, and dirt cheap R&D for you.

      • Depends on the price to switch to a system that isn't so insecure.

        Where I work, we tried switching about fifty servers to Linux, but it failed due to the fact we couldn't find people that knew what they were doing for minimum wage. The two high school drop-outs that work for minimum wage do an OK job with keeping those Windows servers running. Windows is acceptable since our customer SLA is 95% so I think we can have almost five hours of downtime a week. Of course we often exceed that amount of downtime because of Microsoft-created problems, but the lost customers cost less than a Linux expert would cost.

        These guys apparently found people that knew what they were doing for minimum wage and the result is...

      • Where I work, we tried switching about fifty servers to Linux, but it failed due to the fact we couldn't find people that knew what they were doing for minimum wage.

        You should be paying more than the minimum wage, and if you don't, you deserve what you get for your money. Which is Windows. You should go out of business and let someone competent take your place.

    • Talking about Windows TCO.

    • Last I checked Linux has vulnerabilities too that any competent administrator would patch. FYI I have seen SuSE services use for hosting phishing sites with the customer not having any idea due to a rootkit.

      Rootkits were invented on Unix. Where do you think the term ROOT came from?

  • A word about these computers... (Score:5, Informative)

    by GerryGilmore ( 663905 ) on Saturday August 11, 2018 @04:22PM (#57108674)
    It appears that the affected machines were those running process control systems. Because of their VERY finicky nature (and usually being designed to be used on a closed intranet), they almost NEVER apply post-production patches.

    I once worked on a medical device where each and very build installed MUST be a bit-perfect replication of the original. Any new release went through horrific levels of qualification and then IT had to be bit-perfect until the next release.

    The typical "patch Tuesday" crap just cannot work in these environments.

    • Re: (Score:2)

      by gweihir ( 88907 )

      Or in other words, MS Windows is just about the worst OS choice possible for such applications.

      • I agree. However, again having worked in the industry, I can tell you that - especially until the last 5-7 years - the overwhelming pressure: from developers who started in DOS and just fell into the Windows world by default, especially during the silly-ass "UNIX wars"; marketers who thought that Windows would dominate the world and - why not?; MS themselves who - to their credit - created a pretty amazing set of developers tools *AND* a single, unified target market.

        When I was working at a SCO UNIX shop,

        • Re: (Score:2)

          by gweihir ( 88907 )

          Ah, yes. I have run into that stupidity as well. Many people just do not understand that maintenance is the majority of the cost in OS usage. Fortunately, our customers are usually migration from some commercial UNIX to Linux, and that is pretty painless. Also RHEL is maintaining old software with security and crash fixes forever, so updates are low-risk.

      • If an attack is targeted the choice of OS is quite irrelevant. This attack however didn't look targeted, but then also ... wannacry. I would wager that the evening janitor they entrusted to set this up in his spare time would have done an even poorer job with a more esoteric OS.

        • Re: (Score:2)

          by gweihir ( 88907 )

          Sure. Or rather, as long as the attacker has the skills, it is. But would anybody in their right mind do a targeted attack against a company, that could put a $10M price (or higher) on their head without any problems? It is good criminal practice to stay an annoyance and to not become a real threat. Competent criminals understand that.

          • But would anybody in their right mind do a targeted attack against a company, that could put a $10M price (or higher) on their head without any problems?

            Yes, because this is the real world and not some funny action movie staring Steven Segal.

            Corporate espionage and corporate sabotage are a very real thing that happens constantly and sometimes is even state sponsored.

            • Re: (Score:2)

              by gweihir ( 88907 )

              You seem to be the one in the movie...

              • You could be right. After all someone is telling me that something that happens constantly doesn't actually happen. Either I'm in a really poorly written movie, or you're gunning for a republican presidential nomination.

                I declare all of history fake news from this point on wards.

                • Re: (Score:2)

                  by gweihir ( 88907 )

                  I would tell you your data is flawed, but you are thoroughly caught in your filter-bubble, so that is just a waste of time. You are _incapable_ of seeing what is.

                  • I would tell you your data is flawed, but you are thoroughly caught in your filter-bubble, so that is just a waste of time. You are _incapable_ of seeing what is.

                    Yep like I said, all of history if fake news to you nutters.

    • Because of their VERY finicky nature (and usually being designed to be used on a closed intranet), they almost NEVER apply post-production patches.

      Medical device and process control are two very different systems. Process control systems most definitely do get patched. Not instantly, they go through vendor approval first, but they most definitely do get patched.

      • Re: (Score:2)

        by HiThere ( 15173 )

        Yes, but...
        The questions are "How many of the model were sold?" and "How long since it's been under active development?" and "What's involved (cost) in keeping an idle system around?" and "How many experts in this particular model does the manufacturer currently employ?".

        I suspect that combining the answers to those questions would yield "The manufacturer will not support ANY changes in the supplied configuration.".

  • The classical effect of mindless bean-counters that do not understand risk-management at all. Pathetic. And, since further up you usually find the same bean-counters, those that messed up massively here will likely not even be fired.

    • Re: (Score:2)

      by MikeMo ( 521697 )
      You actually have no clue as to why these systems weren't upgraded. You just assume it was the bean counters.

    • You never want to take a wafer fabrication plant offline for unscheduled maintenance, because having a line down costs you $1 to $10 million an hour while you're down. Worse, if you take it down for anything but regularly scheduled maintenance, you have to re-qualify the tool, which can take weeks.

      And if you have to take all your etch tools, or all your metal deposition tools, or all your steppers down, because they all run on the same version of Windows 7, then you're burning through tens of millions of do

      • Re: (Score:2)

        by gweihir ( 88907 )

        You assume I criticize them not patching. That is not correct.

  • Not lost (Score:4, Informative)

    by Kohath ( 38547 ) on Saturday August 11, 2018 @04:31PM (#57108708)

    Just delayed until the next quarter.
    Also, lower revenues are not money "lost".
    Also, a newer story says it's $170 M, (2% of revenue), not $250M: https://digitimes.com/news/a20... [digitimes.com]

    But it wouldn't be a modern news story without a bunch of exaggeration and misunderstood info, would it? The important thing isn't the correct facts, the important thing is to point and laugh at someone's misfortune. Because news...

  • As anti Windows 7 propaganda. All the while Windows 10 is getting worse. I did a clean install of 1803 in a VM today and it came with a dozen pay to win games pre-installed on the start menu and $kype. This was on the pro version as well. The security risks of using Windows 7 outweigh the time wasted de-bloating Windows 10. Intel is even making new motherboards to support Windows 7 [anandtech.com].

    • The security risks of using Windows 7 outweigh the time wasted de-bloating Windows 10.

      What about the privacy risk of Windows 10, and the fact that it is still riddled with vulnerabilities? [cvedetails.com] Just stop abusing yourself and install Linux. If you absolutely must run Windows then run it under KVM. I hear tell that Windows on KVM is actually more efficient than Windows running on the metal, perhaps because of more efficient file system and block device handling.

  • If I had lost $250 million, I would WannaCry too!

  • Google learned this lesson and banned Windows from inside their network, a Windows machine can now be connected to the network only with VP approval. Other organizations are perhaps more stupid.

    Windows is also banned from the world's financial systems after the LSE fiasco. But US Navy is too stupid to ban Windows even after towing that missile cruiser [wikipedia.org] back to port. It should be illegal to use Windows in medical devices, until it does become illegal it should should be a lucrative income source for ambulance

    • even after towing that missile cruiser [wikipedia.org] back to port.

      That case is ancient. It's Windows 4.0 old. It's Rex Ballard advocacy old. It's tired and anybody with a clue remembers people citing it ten years ago when it was already extremely outdated and old.

      • even after towing that missile cruiser [wikipedia.org] back to port.

        That case is ancient.

        Of course it is, but nothing changed after that, that has to tell you something.

        The LSE fiasco is not ancient, Windows is still banned from the world financial system. Not to mention the top 500 list. Islands of sanity. We need more.

        • Nothing has changed since Windows NT 4.0?

          Maybe in your world.

          • Nothing of substance has changed in the Microsoft world. Especially, attitude has not changed, you are living proof of it. And for your information, not a lot has changed in the Windows kernel since Windows NT either, but I would not expect a random Microsoft troll such as yourself to know a whole lot about that. Linux on the other hand changed radically (while preserving external interface stability) in that same period.

            One thing in particular has not changed about Microsoft and its products: they remain a

  • Headline corrected for accuracy :]

  • Given the size and numbers, is $250 million more or less than the cost of keeping their infrastructure up to date?

    And even after this costly mistake by a vendor, just keeping their systems tightly locked down and having much better controls over who or what gets plugged into their network may be far cheaper than updating everything.

    Given that they were back up and running quickly, it does appear that they have everything locked down and backed up. I expect they knew what the risks where and are and will upd

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