Tuesday, August 7, 2018

Computer virus breakout at TSMC could delay Apple shipments


A virus outbreak at Taiwan Semiconductor Manufacturing Co Ltd (TSMC) could delay shipments for Apple’s new iPhones, says a report by Reuters. According to analysts, the impact is expected to be limited as TSMC has apparently prepared itself for such contingencies. According to Reuters’ report, the world’s largest contract-based chipmaker said over this weekend that a number of its computer systems and fabrication tools had been infected by a computer virus and that it expects a full recovery by Monday. 

The company expected the incident to cause shipment delays and predicted a dent in its third-quarter financial results. Apple was one of the impacted customers but a swift recovery in the next quarter should keep the impact minimal, said Mark Li, an analyst at Sanford C Bernstein. “Long-term, TSMC’s trustworthy image is somewhat tainted but it is hard to quantify the effect now,” he added. While some of TSMC’s 12-inch wafer shipments will be delayed, the impact to the upcoming iPhone launch is limited because  “the upstream supply chain usually prepares for these incidents and manufactures surplus chipsets during the initial ramp-up stage,” reported KGI Securities in a report on Monday. Reuters reports that Apple did not immediately respond when asked for a comment. TSMC too reportedly said that it did not have any additional information at the moment. 

It also reportedly cut is annual revenue and capital spending estimates last month amidst low demand from smartphone and cryptocurrency mining industries.

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