Hi-Tech

Big iPhone Parts Maker Hit By Virus Critical Delay

Big iPhone Parts Maker Hit By Virus Critical Delay

"TSMC has been attacked by viruses before, but this is the first time a virus attack has affected our production lines", said CFO Lora Ho.

A computer virus outbreak at Taiwan Semiconductor Manufacturing Co Ltd (TSMC) could delay chip shipments for Apple Inc's new iPhones but the impact will be limited as TSMC has prepared itself for such disruptions, analysts said. "TSMC has taken actions to close this security gap and further strengthen security measures", TSMC said.

The degree of infection varied by fab. TSMC said it found a solution and has now contained the virus, and has also restored 80 percent of the company's affected tools.

The virus struck late on Friday night and led to the closure of several TSMC factories, and some of these are still not operational.




"Long-term, TSMC's trustworthy image is somewhat tainted but it is hard to quantify the effect now", Li wrote in a research note Monday. The company expects the downtime to negatively impact its third quarter revenue by 3 percent, and its gross margin by a single percentage point.

TSMC previously said about 10% of its revenues would be generated from its most-advanced 7nm process technology in the third quarter of 2018, and the proportion would reach 20% in the fourth quarter, with an over 20% in all of 2018.

The company didn't provide details on the source of the virus.

Rumors that TSMC had suffered a hacker attack were incorrect, it said. The company is now the sole producer of the processors that power Apple's iPhones and it was in the midst of ramping up for the launch of the company's latest smartphones. August is a big month for manufacturing as we're leading into the holiday season and consumer devices are being made now, but you can't make those new expensive products without chips made by TSMC if you're one of their customers. During the course of her conversation with Bloomberg, Ho declined to give any specifics regarding the financial impact of this attack.


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