Published: Mon, August 06, 2018
Industry | By Dora Warner

IPhone Supplier TSMC Shut Down Several Factories After Computer Virus Hits Systems

IPhone Supplier TSMC Shut Down Several Factories After Computer Virus Hits Systems

While TSMC has been attacked by viruses before, it is for the first time that such an attack has affected its production lines and halted the chip manufacturing process at the company's factories.

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.

Although it remained unclear who targeted TMSC, the company which not only supplies processors to Apple but also to Qualcomm, the report stated that the virus was not introduced by a hacker.

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Any shipment delays caused by this virus incident - which occurred just about two months after Morris Chang had retired - could undermine the customer trust that it had long built up, the sources speculated.

The company expects full recovery on August 6, the company said in an updated statement on Sunday.

Most of TSMC's customers have been notified of this event, and the Company is working closely with customers on their wafer delivery schedule.

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TSMC spent the weekend scrambling to get its operations back to normal.

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. 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. The iPhone maker last week surpassed a market value of $1 trillion, largely on the strength of sales for its pioneering smartphone.

Apple is said to be ramping up production of three new iPhone models for this fall, banking on them to continue its recent sales momentum.

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TSMC has grown to become the largest independent semiconductor foundry in the world, with profits a year ago of $11.6 billion.

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