ibusinesslines.com
ibusinesslines.com October 22, 2018


Virus briefly halts production at iPhone chip-maker TSMC

06 August 2018, 03:26 | Jodi Jackson

TSMC expects to have all its factories back to normal by Monday but exact impact on supplies for new iPhone models is not yet known

TSMC expects to have all its factories back to normal by Monday but exact impact on supplies for new iPhone models is not yet known

The computer virus outbreak at Taiwan Semiconductor Manufacturing Company (TSMC) has raised concerns about its impact on the foundry house's shipments particularly its 7nm chip output during the third quarter, a traditionally peak season for the contract chipmaker's clients such as Apple. (TSMC) is recovering from a major internal computer virus outbreak that ravaged its systems, forcing the chipmaker to shut down several factories. The Taiwanese company said the incident, which comes as it ramps up chipmaking for Apple Inc.'s next iPhones, would delay shipments, without specifying which customers would be affected. TSMC has said that the virus affected several of its fabrication tools though the problem has been contained.

No confidential information was compromised, the company said.

The chip manufacturer didn't specify what it was producing when this problem occurred, but given the timing it was nearly certainly the Apple A12.

It is not thought yet that the attack will delay the much-expected iPhone 9, thought to be under construction now before an expected reveal in September, but the news came as TSMC ups production in anticipation of the launch from its biggest customer. We estimate the impact to third-quarter revenue to be about three percent, and impact to gross margin to be about one percentage point.


Apple did not immediately respond to a Reuters request for comment.

"TSMC has been attacked by viruses before, but this is the first time a virus attack has affected our production lines", the company is quoted as saying.

A bellwether for the chip industry as well as an early indicator of iPhone demand, TSMC heads into its busiest quarters grappling with waning enthusiasm for the high-powered chips used to mine digital currencies.

TSMC has said it maintained its previous forecast of high single-digit revenue growth for 2018 as shipments delayed in the third quarter would recover in the fourth quarter. Chief executive officer CC Wei had said sales would rise this year by a high single-digit percentage in U.S. dollar terms, down from an already reduced projection of about 10%.



Other News

Trending Now

Virat Kohli, Ishant Sharma Put IND in Decent Position
India´s Captain Virat Kohli on the first day of the 2018 Women´s British Open Golf Championships at Royal Lytham & St. The second-highest scorer for India in the Test , Hardik Pandya, made 53 runs, or just over a quarter of Kohli's runs.

Duchess of Sussex's sister takes cruel swipe on her birthday
The new royal looked beaming with joy as she arrived for the wedding, chatting with fellow guests and well-wishers. William and Kate are also thought to have thoughtful names for one another.

Facts of Life star Charlotte Rae dies at 92
She had two sons, Larry and Andrew , with her ex-husband, John Strauss , who she divorced in 1976 after he came out as bi-sexual. Speaking out on her 91st birthday in April 2017, the veteran star proved that she was living her life to the fullest.

Air Tanker Deployed to Contain Devastating Mendocino Complex Wildfires
Hundreds of colleagues, family and friends attended a memorial service Saturday in Fresno for National Forest Service Capt. The worldwide fire teams from Australia and New Zealand will arrive in Redding on Monday, Pimlott said.

Bookkeeper Testifies in Court Manafort Was Broke in 2016
But when applying for a loan at UBS, he wanted to buff up his reported income to demonstrate he had the means to pay it back. But Washkuhn said that while Gates dealt with some business matters for Manafort's consulting firm, "mainly Mr.

Manchester United finally get their hands on Tottenham defender
And this development has led to United calling off their pursuit of Mina and turning their attention back towards Alderweireld. The Mirror broke the news on Sunday morning, and United are confident of getting a deal tied up within the next 48 hours.

11 children rescued from filthy compound with little food or water
Another man who was living at the compound, Lucas Morton of Atlanta, is charged with harboring a fugitive and is also behind bars. The Taos County Sheriff's Office brought in a special response team because they believed Wahhaj and Morten, were armed.