With a Slight Lapse, TSMC Pays NT$5.2 Billion in Tuition

  With a Slight Lapse, TSMC Pays NT$5.2 Billion in Tuition

United Daily News Editorial (Taipei, Taiwan)

August 9, 2018

 Translation of an Excerpt

When TSMC installed a new assembly line last weekend, because it carried the computer virus "WannaCry," as soon as the assembly line was launched, the virus spread to all TSMC plants in north, central and south Taipei. TSMC had to suspend production in order to remove the virus; the problem was completely eliminated after two days of scrutiny. Since its inauguration, TSMC has installed nearly ten thousand assembly lines; this is the first time that production lines were shut down due to a virus contamination. The virus attack this time caused TSMC a loss of NT$5.2 billion, with its stock price falling for two consecutive days; the tuition was exorbitant.

Examining the virus tempest this time, in the matter of prevention before the incident and in the matter of posterior remedy, there were several points for TSMC to undertake review. In the matter of prevention, in the past, before a new assembly line was installed at TSMC, it must undergo virus removal, ascertaining no problem before it was connected to the network; this ought to be the SOP of information security for business. Nevertheless, this time, the new assembly line was connected without first removing the virus; TSMC has already admitted that internally operating norms were not in observance this time.

In the matter of posterior remedy, TSMC's response was a bit too slow. The virus contamination occurred in the evening of last Friday, and the news spread throughout the industry on Saturday morning. However, TSMC issued a terse written statement late on Saturday afternoon to clarify that it is not a hacker attack. As the explanation was too brief and concise, speculations still ran wild in the market. As a result, TSMC issued a second written statement on Sunday. However, the two statements were at variance as to the estimated time for production resumption, and the dollar amounts of the losses were also different. On Monday, TSMC's share price fell, with no sharp decline, but it reflected unease on the part of shareholders. Finally, TSMC’s new CEO, C. C. Wei, came out personally to dispel misgivings, but it seemed that he didn’t tell the whole story.

With respect to safeguarding information security of business, the government ought not to be a bystander either. TSMC suffered a virus attack this time and the company denied that it was an attack by hackers. However, the new assembly line containing a virus was installed and was connected to the network without first being scanned for viruses, causing its share price to reverberate and a loss of NT$5.2 billion in business. Based on business secrets considerations, TSMC did not say much about such details as the assembly line suppliers; however, it is necessary for the criminal justice system to delineate the crux of the matter, ascertaining whether any illegalities were involved so as to turn this virus attack into a case study beneficial to society.

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