iPhone Chip Maker Firm Attacked with Computer Virus

Chiang Rai, Thailand: April 8, 2017 – Close-up image of power management IC chip on Apple iPhone 6 or iPhone 6plus logic board. Selective focus

Launch of Many New iPhone Models May be Delayed.

The world’s leading semiconductors and processors’ manufacturing firm and sole supplier of Apple iPhone chipsets, Taiwan Semiconductor Manufacturing Company (TSMC), became the target of a cyber-attack on Friday night. Reportedly, TSMC had to shut down its manufacturing plants because of the attack. It is revealed that a computer virus hit many of its factories but the situation is under control now.

However, the company will be facing some problems due to the attack. Firstly, it is quite likely that the attack will affect around third-quarter revenues of TSMC. The impact is going to be about 3% on revenues and 1% on gross margin. Secondly, the release of some of Apple’s new phones including the iPhone 9, iPhone XS and iPhone X 2018 model might get delayed because the company expects delays in shipments and fears incurrence of additional costs too.

As of now, not much information has been revealed about the virus and none has taken responsibility for the attack. There is no clarity whatsoever regarding whether the factories were attacked with ransomware or some other kind of malware.

See: How A Coffee Machine Infected Factory Computers with Ransomware

But, TSMC spokesperson stated that the virus hasn’t been launched by an individual hacker. Some affected factories already have resumed their normal operations but many still remain closed and are unlikely to resume operations until 6th Aug. 

According to the chief financial officer at TSMC, Lora Ho, the company has received several virus attacks previously too, but the latest one has been the strongest so far as it affected its productions. Reports suggest that TSMC’s computer systems and fabrication tools have been affected by the attack.

In a statement released by TSMC on Sunday, the virus has caused issues with productions department. The company believes that any losses incurred due to the virus attack will be recovered in the fourth quarter.

“The company is confident shipments delayed in the third quarter will be recovered in the fourth quarter 2018 and maintains its forecast of high single-digit revenue growth for 2018 in US dollars given on July 19, 2018,” added Ho.

Image credit: Depositphotos

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