TSMC warns of delayed shipments

taipei — Taiwan Semiconductor Manufacturing, which makes chips for the iPhone and other devices, detailed its progress in recovering from a debilitating computer virus and warned of delayed shipments and reduced revenue because of the impact on its factories.

TSMC said that 80 per cent of the fabrication tools affected by a virus outbreak Friday evening had been restored and that it expects full recovery on Monday, an emailed statement shows. The Taiwanese company said the incident, which comes as it ramps up chipmaking for Apple Inc.’s next iPhones, would delay shipments, without specifying which customers would be affected.

The chipmaker estimated that third-quarter revenue would decline by about three per cent and operating margins by about one per centage point, according to the Sunday statement. It maintained its 2018 forecast of boosting revenue by high single digits in US dollar terms.

The incident underscores the global nature of the technology industry’s supply chain, in which companies like Apple and Qualcomm depend on hundreds of suppliers around the world. This is the first time a virus had ever brought down a TSMC facility, recalling the WannaCry cyberattacks of 2017 that forced corporations around the world to suspend operations as they rooted out the ransomware. —