As the semiconductor landscape evolves, so do the threats — and the opportunities. We must champion hardware security as a core pillar of product strategy, invest in future-proof architectures and foster cross-industry collaboration to set new standards for trust and resilience.

For decades, semiconductor innovation was synonymous with Moore’s Law — smaller, faster and more energy-efficient chips. Today, as digital infrastructure underpins everything from autonomous vehicles to national defence, the focus is shifting. Hardware security is no longer a niche concern, it is a strategic imperative for semiconductor product leaders.

Recent high-profile vulnerabilities — such as Zenbleed, Downfall and Inception in CPU microarchitectures, the BlackLotus UEFI bootkit and GPU data leaks like LeftoverLocals — have exposed the limitations of traditional software-centric security. These incidents are not theoretical, they have enabled attackers to bypass software defences, compromise mission-critical workloads and inflict significant financial and reputational damage. IBM’s 2024 report pegs the global mean cost of a breach at $4.88 million, with healthcare breaches averaging nearly double that.

Meanwhile, the post-quantum era is fast approaching. National Institute of Standards and Technology’s (NIST) finalization of Post-Quantum Cryptography (PQC) standards (FIPS 203/204/205) and the adoption of hybrid post-quantum key exchange by hyperscalers signal a new urgency. The agenda for leaders is clear: adopt proven countermeasures, accelerate PQC migration and invest in hardware-native defences that do not compromise performance.

The expanding attack surface: Why hardware security matters now?

The significance of hardware security will increasingly become vital each day because of:

1. Ubiquitous connectivity: The proliferation of IoT, 5G and cloud computing has exponentially increased the number of connected devices. Each device is a potential entry point for attackers, raising the stakes for robust hardware security.
2. Critical infrastructure at risk: Semiconductors power everything from medical devices to power grids and defence systems. A single hardware vulnerability in these sectors could have catastrophic consequences, making hardware security a matter of national and economic security.
3. Complex global supply chains: Modern semiconductor manufacturing spans multiple countries and vendors, increasing the risk of tampering or espionage during design, fabrication and assembly.
4. Sophisticated threat actors: Advanced Persistent Threats (APTs) and nation-state actors are increasingly targeting hardware-level vulnerabilities, which can evade conventional detection and remediation.

The sectoral impact: Automotive, industrial and healthcare

No sector would be left out that needs to be secured, especially as we see more technological advancements emerging in areas such as AI, Cloud Computing and Smart Manufacturing. These innovations are transforming industries and creating new security challenges that must be addressed proactively.

• Automotive: Self-driven vehicles (SDVs) rely on advanced software, OTA updates and cloud-based systems, creating a broad attack surface. Regulatory mandates like UNECE R155 (mandatory in the EU from July 2024) are pushing cybersecurity management systems and secure OTA updates into the mainstream.
• Industrial automation (OT/ICS): The convergence of IT and OT under Industry 4.0 increases vulnerability. Standards like ISA/IEC 62443 promote multi-layered security; however, legacy device interoperability remains a significant challenge.
• Healthcare: The average cost of a healthcare breach is $9.77 million—over twice the global average. The sector has led in breach costs since 2011, reflecting the high value and sensitivity of medical data.

Cutting-edge security solutions across the stack

Silicon-level security

• Confidential computing: Protects data in use via hardware-based Trusted Execution Environments (TEEs). Adoption is high (CAGR 62.1% through 2028), but integration complexity and performance overheads remain.
• Hardware Root of Trust (HRoT): Provides a secure foundation for device boot processes. Widely adopted in servers and data centers (53.1% market share in 2024), but vulnerabilities at this level are difficult to patch.

Hardware-level security

• Hardware Security Modules (HSMs): Tamper-resistant devices for cryptographic key management. The market is projected to reach $3.28 billion by 2030 (CAGR 14.5), but cost and complexity can be barriers for smaller organizations.
• Biometric authentication hardware: Rapidly growing, with significant CSO investments planned. Offers secure, user-friendly access but raises privacy concerns around biometric data storage.

Firmware-level security

• Secure firmware updates: OTA frameworks that cryptographically validate updates. Adoption is strong (CAGR 9.9% through 2030), but patching at scale, especially for IoT, remains challenging.
• Measured boot: Records system state during boot for later verification. Increasingly adopted in enterprise and critical infrastructure but is reactive rather than preventive.

Software-level security

• Zero Trust Architecture (ZTA): Assumes no user or device is trusted by default. 81% of organizations are investing in Zero Trust, but implementation complexity can impact user experience.
• AI-driven extended detection and response (XDR): Uses AI/ML for real-time threat detection and response. Adoption is accelerating, but adversaries are also leveraging AI, necessitating constant evolution.
• Quantum-resistant cryptography: NIST’s FIPS 203/204/205 standards are driving early adoption. Cloudflare and Google have deployed hybrid PQC solutions, but widespread migration requires crypto-agility and careful planning.

Advancing toward resilient and sustainable hardware security solutions

1. Side-channel resilient microarchitectures
   1. Cache isolation and partitioning: Techniques like way-colouring/page-colouring for multi-tenant environments
   2. Secret-independent control flow: Constant-time micro-operations for cryptographic kernels
   3. Real-time anomaly detection: Hardware counters and sensors for detecting fault injection and timing manipulation
2. PQC acceleration
   1. Lattice accelerators: Integrated near memory paths for efficient post-quantum cryptography
   2. Hybrid TLS offload: Hardware support for hybrid key exchange and signature schemes in secure boot flows
3. Chiplet security
   1. UCIe with encryption and attestation: Partition isolation, address fencing and die-level attestation for multi-vendor system-in-package (SiP) designs
   2. Standardized link-level protection: Progress in UCIe 1.1/2.0 and security working groups
4. Formal security verification
   1. RTL and firmware verification: Extending formal property sets to information flow and non-interference
   2. Security signoff in EDA flows: Integrating security checks alongside timing and EMI signoff
5. Scalable hardware roots
   1. Lean Secure Monitors: TrustZone/TEE designs with zero-copy trusted I/O and accelerated crypto
   2. CVM Hardening: Protecting against hypervisor-managed interrupt attacks without performance regression

A secure environment fosters consistent and reliable results: HCLTech is renowned for its commitment to security.

At HCLTech, we are at the forefront of hardware security advancements, pioneering semiconductor innovation. Our dedicated cybersecurity Centers of Excellence (CoEs) focus on securing smart manufacturing and software product levels, leveraging frameworks and solution accelerators across over 1,000 security projects. This robust security ecosystem positions us as a leading service provider in the semiconductor industry, ensuring that our innovations meet and exceed industry standards for security services.

In the realm of semiconductor innovation, we are driving transformation through strategic partnerships and cutting-edge technology. We offer tailored solutions for C-level executives and IT leaders, focusing on end-to-end lifecycle management for silicon, from concept to end-of-life. Our collaborations with industry leaders and OEMs ensure that we deliver superior semiconductor solutions, reflecting our commitment to excellence and reliability semiconductor innovation.

Furthermore, we harness the power of AI and digital accelerators to simplify complexity, reduce costs and accelerate time-to-market. Our expertise spans from silicon to systems, helping clients design intelligently and manufacture efficiently. This approach ensures that we remain at the cutting edge of semiconductor transformation, enabling businesses to achieve their full potential in the competitive semiconductor engineering landscape.

Strategic recommendations for industry leaders

1. Elevate hardware security to a product strategy: Treat security as a first-class metric alongside Performance, Power and Area (PPA)
2. Invest in crypto-agility: Design platforms that can adapt to evolving cryptographic standards, especially as PQC adoption accelerates
3. Standardize security signoff: Make security verification as integral as timing or EMI signoff in the product development lifecycle
4. Collaborate across the supply chain: Work with ecosystem partners to ensure end-to-end security, from design to deployment
5. Balance security and performance: Prioritize solutions that enhance security without introducing unacceptable performance overheads

Let’s lead the way—by making security the foundation of innovation

Security at the silicon level is now a product strategy, not just a software problem. Microarchitectural exploits, quantum-era cryptography and regulated mission-critical domains are converging. The winners will be those who design for confidentiality, integrity and availability as core product metrics, build crypto-agility into their platforms and standardize security signoff across the supply chain—without compromising performance.

Future innovations in semiconductors will be measured not just by speed and efficiency, but by resilience to attack and the ability to safeguard critical assets. Hardware security is poised to become the defining feature of next-generation semiconductor technology, shaping the future of computing, communications and connected life.