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IPhone Chipmaker Races to recover from computer viruses

Taiwan Semiconductor Manufacturing Co., which manufactures chips for iPhone and other devices, detailed its progress in recovering from a debilitating computer virus and warned of delayed transfers and reduced revenues due to its impact on its factories.

TSMC said that 80 percent of the manufacturing tools affected by a virus outbreak on Friday night had been restored and expects full recovery on Monday, an email shows. The Taiwanese company said that the event that comes as enhancing chipmaking for Apple Inc.'s next iPhones would delay transfers without specifying which customers would be affected.

The chipmaker estimated that revenues from the third quarter would decrease by about three percent and operating margins by about one percentage point, according to Sunday's statement. It maintained its 201

8 forecast to increase revenues with high single digits in US dollars.

The event underlines the global nature of the technology industry's supply chain, where companies such as Apple and Qualcomm Inc. rely on hundreds of vendors around the world. This is the first time a virus ever hit a TSMC facility, reminding of the WannaCry Cyber ​​Attack from 2017 that forced companies around the world to cancel operations when they ran out of ransomware. TSMC says that no confidential information has been compromised in the virus attack and most customers have been notified.

"TSMC has taken steps to close this security gap and further strengthen security measures," said TSMC Finance Director Lora Ho on Sunday. 19659009] Photographer: Maurice Tsai / Bloomberg

The company is the latest to change to a growing cyber crime can cost businesses as much as $ 8 billion injuries over the next five years, according to World Economic Forum.
Learn more about the WannaCry attacks [19659002] Implications are unclear for Apple. The iPhone manufacturer last week exceeded $ 1 billion in market value, largely due to the sale of its groundbreaking smartphone.

Learn more: Apple becomes the first US company to hit $ 1 trillion [19659015] Still, TSMC's statement that the virus will affect deliveries will be sensitive to Apple, which is TSMC's largest customer and stands f earning more than 21 percent of its revenues, according to information provided by Bloomberg. Apple designs the processors that go into their devices, but it uses TSMC as its exclusive partner to produce the chips. In the past, the US company has hired foundries owned by Samsung Electronics Co., its rival in global mobile devices.

Apple is ramping up the production of three new iPhone models in the fall, knocking them on to continue its latest sales impulse. It also plans new iPad and Apple Watch models, devices that have historically used chips produced by TSMC. While TSMC has not specified which customers may be affected, such a virus may potentially lower Apple's production of new devices, reducing the number of sales units.

Apple is preparing for last minute supply chain hiccups as the one facing TSMC and could work through any problems. An Apple spokesman did not respond immediately to a request for comments on Sunday.

While Qualcomm, which provides processors for many devices running Android software, TSMC gives about 6 percent of its revenue, it diversifies its production so some markets are being built by competitors like Samsung. Huawei Technologies Co., MediaTek Inc., Nvidia Corp, and Texas Instruments Inc. are also dependent on TSMC to produce chip design.

The event comes weeks after TSMC happy investors with a rosy perspective on smartphone demand in the latter half of the year. It helped the market to review a reduced revenue outlook. A bellwether for the chip industry, as well as an early indicator of iPhone demand, leads the head to its busiest quarters that cope with the slowing enthusiasm for the powerful chips used for my digital currencies. CEO CC Wei said that TSMC's sales will increase this year with a high one-digit percentage in US dollars, down from an already reduced forecast of about 10 percent.

Virus outbreaks were due to "malfunction" during the software installation process for a new tool, the company said in the statement. The virus then spread when the tool was connected to the TSMC data network.

"TSMC has been previously attacked by viruses, but this is the first time a virus attack has affected our production lines," said Ho to Bloomberg News.

( Updates to the Apple Ratio from the Seventh. )

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