TSMC hit by virus

Isaac Cain
August 6, 2018

A virus on Friday evening nearly shut down TSMC production, Bloomberg reports, with 80% of the fabrication tools having been affected.

TSMC fabricates chip solutions for Apple and other mobile device vendors, and has reportedly kicked off its shipments for the forthcoming iPhones and other new smartphone models.

(TSMC), the sole manufacturer of the iPhone's main processor, was shut down following a virus attack. Data integrity and confidential information was not compromised.

TSMC is now the world's largest independent semiconducer in the industry, with the company making NVIDIA's new 12nm GPUs for their upcoming GTX 11 series graphics cards, and the new 7nm chips for Apple's new iPhones.

TSMC said it expected this incident to cause shipment delays and additional costs and estimated the impact to gross margin to be about 1%.

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A logo of Taiwan Semiconductor Manufacturing Co (TSMC) is seen at its headquarters in Hsinchu, Taiwan October 5, 2017. "TSMC has taken actions to close this security gap and further strengthen security measures", Chief Financial Officer Lora Ho said by phone Sunday.

The company noted that among the systems infected were a number of fabrication tools across multiple factories.

Apple, as well as other TSMC customers have yet to officially address the incident and how it affects their roadmap, if at all. I can't imagine TSMC's partners are particularly happy but it does seem that things are to get back on track in the following quarter.

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 C.C. Wei had said TSMC's sales will rise this year by a high single-digit percentage in U.S. dollar terms, down from an already reduced projection of about 10 per cent.

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