However, the manufacturing giant, a producer of components for Apple’s iPhone product family, has warned that the incident will cause “shipment delays and additional costs.”
Hitting the Bottom Line
TSMC estimates that the days lost to the virus will result in a three percent impact to Q3 revenue and the impact to gross margin is expected to be approximately one percent.
Shipments delayed in the third quarter will be recovered by the fourth quarter and the firm intends to work with customers to communicate how wafer orders will be processed.
The Taiwanese manufacturer has not specified which customers may experience delays.
However, according to data compiled by Bloomberg, Apple accounts for over 21 percent of TSMC’s revenue and the virus outbreak has occurred before the iPad and iPhone maker is rumoured to announce vast price cuts to its smartphone range, as well as potentially reveal the iPhone X Plus.
Sanford C. Bernstein analyst Mark Li told Bloomberg that despite the disruption, TSMC shipment delays are likely to be “very limited” as the company can catch up over the holiday season.
The majority of customers have been notified and TSMC says that no confidential or sensitive data was compromised during the incident.
The company has also taken additional steps to improve security measures and prevent a recurrence.
At the time of writing, TSMC shares have fallen by 0.74% in Taiwan.
This article is from the CBROnline archive: some formatting and images may not be present.
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