Malware interrupts TSMC and maybe Apple

prototype-apple-tsmc-chipTaiwan Semiconductor Manufacturing Co. (TSMC) was hit with a crippling virus last Friday, in what has been described as its most severe disruption to manufacturing. The malware is said to have been a variant of WannaCry.

While the problem was resolved in a matter of days, the incident is believed to have ramifications on the production of chips for Apple’s next iPhone. As TSMC’s largest consumer, accounting for more than 21% of revenue, Apple works exclusively with the Taiwanese company to supply its iPhone chips.

With Apple already building momentum for its next releases, the company can only hope that the effect on output for its new devices is minimal but with the cost impact of the outbreak estimated to be US$170m there may delays. Some industry analysts say product launches scheduled for September will be delayed.

Read more: SCMP / Bloomberg / SMH / CNN

Image: An Apple/TSMC smartphone processor. By Henroik / CC0 

This story is taken from the 10 August 2018 edition of The Warren Centre’s Prototype newsletter. Sign up for the Prototype here.