Ransomware attack halts X-FAB production in Lubbock, worldwide

Updated: Jul. 15, 2020 at 3:09 PM CDT
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LUBBOCK, Texas (KCBD) - Production at the X-FAB plant in Lubbock was halted on July 5 due to a ransomware attack on their manufacturing and IT systems.

Ransomware attacks encrypt valuable data and require companies to pay a ransom to regain access to their proprietary information and prevent it from being released to the public.

X-FAB, a global company that manufactures parts for electronics, has six locations worldwide: three in Germany, one in France, one in Malaysia and one in the United States, located here in Lubbock. The group halted IT systems and production lines at all their locations when they learned of the attack.

A statement released this week by X-FAB corporate says one of its manufacturing sites has resumed production since July 13, but the statement did not specify which location. KCBD NewsChannel 11 has confirmed that the Lubbock location has not re-opened. X-FAB has operated in Lubbock for almost 20 years.

A news release also says they expect the sites still closed to open within a week.

X-FAB customers and business partners were notified of the ransomware attack, but the group does not expect a major impact on its business.

“In response to the production stop after the cyber attack, X-FAB had pulled forward the two-week fab shutdowns initially planned to take place later in the third quarter as part of its COVID-19 cost-saving initiative. After a detailed check, X-FAB does not anticipate damage to the work in progress caused by the sudden stop of its production lines.”

The group says there will be an additional investment to improve IT security and they are working to “gradually and safely resume all systems.”

A news release says X-FAB’s priority now is to resume production at all manufacturing sites. All other IT related systems will follow. Under these circumstances, the publication of the second quarter results initially planned for July 30 will be postponed until August 27, 2020.

X-FAB employs about 3,800 people worldwide with about 200 in Lubbock.

They received $200,000 grant from the Lubbock Economic Development Alliance in 2007.

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