Wednesday, 24 October, 2018

Apple iPhone chip supplier says virus will delay shipments

Computer chip in circuit board Getty Images
Troy Mann | 06 August, 2018, 21:28

A computer virus halted production at several Taiwan Semiconductor Manufacturing Co (TSMC) factories on Friday night, causing a severe disruption as the company ramps up chipmaking for new Apple iPhones. TSMC said about 80% of affected machines were restored on August 5; the rest were expected to be up and running on August 6.

A critical partner for the launch of the new iPhone the Company is able to volume produce of 7mm chips, which will drive performance while limiting energy usage in the new iPhones.

"TSMC has been attacked by viruses before, but this is the first time a virus attack has affected our production lines", chief financial officer Lora Ho told Bloomberg News. TSMC says no confidential information was compromised in the virus attack and most customers have been notified. It's also the world's largest maker of made-to-order chips, which involves manufacturing products designed by companies like Qualcomm (QCOM) and Nvidia (NVDA).

The Taiwan Semiconductor Manufacturing Company (TSMC) had to shut down parts of its factories.

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"TSMC expects this incident to cause shipment delays and additional costs". The company didn't immediately respond to CNET's request for further comment. It plans to make up for missed shipments in the fourth quarter, however, and remains hopeful that it won't be too hurt by the incident.

Digitimes is reporting the announcement by TSMC that the virus infection is estimated to impact its third quarter revenue to the tune of 3%.

The company said that a number of its computer systems and fab tools had been infected. Analysts are still calling for more clarity on the situation, however, considering TSMC's description of the incident to be too vague even with data integrity supposedly intact.

Rumors that TSMC had suffered a hacker attack were incorrect, it said.

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