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TSMC hit by virus which could delay next iPhones

Apple iPhone chip manufacturer forced to shut factories after Wannacry variant infection

TSMC hit by virus which could delay next iPhones
TSMC has been forced to shut production in several of its fab plants due to a WannaCry infection.

Chip manufacturer TSMC has warned that a virus infection at several of its plants may production of processors for the next iPhone.

TSMC is the sole supplier of the 7nm Apple A chips, which will power the next generation of Apple's flagship smartphone.

At the weekend, TSMC was forced to shut down production at several of its factories in Taiwan dues to an infection with a variant of the Wannacry ransomware which caused widespread disruption in Europe last year.

The company said that a number of its fabrication plants and tools were infected, resulting in a shut down, with 80% of plants infected back in operation by yesterday [Monday].

TSMC did not believe that the infection was due to hacker activity, but that it had been introduced when new equipment, believed to be hosting the virus, was installed. The incident marked the first time that its fabs had been infected.

TSMC said that the infection would reduce estimated third quarter revenues by 3%, or $255m as well as shipment delays that would be caught up by the fourth quarter.

Analysts said that the virus infection will not have a major impact on supply of the upcoming iPhones models, due for launch this Autumn, as the supply chain will normally have surplus to absorb the lost production.

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