Published: Tue, August 07, 2018
Electronics | By Shannon Stone

IPhone chipmaker hit by major virus

IPhone chipmaker hit by major virus

As of 14:00 Taiwan time, about 80% of the company's impacted tools have been recovered, and the company expects full recovery on August 6, ' a TSMC spokesperson explains in a brief statement on the issue made late yesterday.

"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. The company expects the downtime to negatively impact its third quarter revenue by 3 percent, and its gross margin by a single percentage point.

Founded in 1987, TSMC has become the go-to company for component manufacturing not only for Apple but also Advanced Micro Devices Inc., Nvidia Corp. and Qualcomm Inc.

"TSMC has contained the problem and found a solution, and recovery of the tools is in progress", it said in a statement.

Apple has not commented on the incident. The iPhone maker last week surpassed a market value of US$1 trillion, largely on the strength of sales for its pioneering smartphone. The A12 series will be Apple's first 7nm chip, expected to deliver significant performance and efficiency gains over its predecessor, which is already well above its competitors. A 3 percent revenue decline might not sound like much, but we can use TSMC's Q3 2017 revenue report as a guideline for what the 2018 decline might look like.

CHIPMAKER TSMC was forced to shut down its factories after a computer virus ran riot on its systems, Bloomberg reports. It maintained its 2018 forecast of boosting revenue by high single digits in US dollar terms.

"The company's CEO, C.C. Wei, said an 'operational error" occurred when a new tool was not taken offline during installation and the virus quickly spread to over 10,000 machines in its factories across Taiwan.

The company says that the virus was introduced when a supplier installed infected software - which was provided by a vendor - without a virus scan.

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