Apple Supplier TSMC Recovering From 'Debilitating' Computer Virus [Updated x2]

Apple supplier Taiwan Semiconductor Manufacturing Company is in recovery from a "debilitating" computer virus that hit many of its fabrication tools this past Friday evening. The company says that 80 percent of the affected tools have been restored, but it's now on a path to warn its customers -- potentially including Apple -- of delayed shipments and reduced revenue due to the virus (via Bloomberg).

a11 bionic iphone x
TSMC builds chips for Apple's iPhone, and in late July a report from DigiTimes stated that the supplier had begun commercial production of chips manufactured using its advanced 7-nanometer process, including Apple's A12 processor for the 2018 iPhones. Now TSMC says many of its customers can expect shipment delays, although it didn't specify which customers would be affected.

The supplier says that "no confidential information" was compromised during the virus attack and as of Sunday most of its customers had been notified. TSMC believes the virus came from a "misoperation" during the software installation process for a new tool that then spread through its computer network, and one analyst thinks "all of TSMC's 12-inch wafer fabrication plants" were infected.

Mark Li, an analyst at Sanford C. Bernstein, said he thinks all of TSMC’s 12-inch wafer fabrication plants had been infected and that many customers had been affected, though the impact will be “very limited” because the company can make up for the losses during the busiest holiday quarter. TSMC makes Apple chips in its 12-inch fabrication plants.

“Long-term, TSMC’s trustworthy image is somewhat tainted but it is hard to quantify the effect now,” Li wrote in a research note Monday.

Although it's unclear how the virus will end up affecting Apple and the trio of iPhones expected to be revealed next month, Apple is TSMC's largest customer and is said to account for more than 21 percent of TSMC's revenue. Apple chose TSMC to remain the exclusive supplier of the upcoming A12 processor for the new iPhones, following rumors from last year that suggested Samsung could be returning to iPhone chip production in 2018.

Despite the fear over chip shipment delays, Apple is likely to have plans in place for any potential supply chain delays, as Bloomberg points out:

While TSMC has not indicated which customers could be affected, such a virus could potentially slow Apple’s output of new devices, cutting into the number of units sold.

Apple does prepare for last minute supply-chain hiccups like the one facing TSMC and could work through any potential problems. An Apple spokesperson didn’t immediately respond to a request for comment on Sunday.

“If the most advanced 7nm process products suffer a major impact, then concern could arise over a potential launch delay for next-gen iPhones,” SMBC Nikko analysts wrote on Monday.

Apple is expected to announce three iPhone models at an event in September: two OLED models measuring in at 5.8 and 6.5 inches and a 6.1-inch lower-cost LCD model. All three iPhones released in 2018 will support Face ID and edge-to-edge displays, with designs similar to last year's tenth-anniversary iPhone X. According to the latest supply chain analysis (which came prior to TSMC's virus attack), the OLED iPhones were predicted to have a typical September launch window while the LCD model could "possibly" be delayed to October.

Update: TSMC provided more information in a statement Monday morning, placing blame for the virus attack on a variant of the 2017 WannaCry ransomware. The virus hit facilities in Tainan, Hsinchu and Taichung, including locations that produce Apple chips. According to TSMC CEO C.C. Wei, an "unidentified vendor" provided the company with the infected tool, ruling out the possibility of a hacker targeting TSMC.

“We are surprised and shocked,” Wei told reporters. “We have installed tens of thousands of tools before, and this is the first time this happened.”

Update 2: Bloomberg updated its article, stating that TSMC "is expected to be able to fill orders on time for Apple Inc.," so there appears to be no delay in chip shipments for the 2018 iPhones.

Tag: TSMC
Related Forum: iPhone

Popular Stories

AirPods Pro 3 Mock Feature

AirPods Pro 3 Just Months Away – Here's What We Know

Friday April 18, 2025 5:16 am PDT by
Despite being more than two years old, Apple's AirPods Pro 2 still dominate the premium wireless‑earbud space, thanks to a potent mix of top‑tier audio, class‑leading noise cancellation, and Apple's habit of delivering major new features through software updates. With AirPods Pro 3 widely expected to arrive in 2025, prospective buyers now face a familiar dilemma: snap up the proven...
iphone 16 pro models 1

17 Reasons to Wait for the iPhone 17

Thursday April 17, 2025 4:12 am PDT by
Apple's iPhone development roadmap runs several years into the future and the company is continually working with suppliers on several successive iPhone models simultaneously, which is why we often get rumored features months ahead of launch. The iPhone 17 series is no different, and we already have a good idea of what to expect from Apple's 2025 smartphone lineup. If you skipped the iPhone...
Beyond iPhone 13 Better Triad

Apple's 20th Anniversary iPhone May Finally Go All Screen

Tuesday April 15, 2025 6:31 am PDT by
Apple is preparing a "bold" new iPhone Pro model for the iPhone's 20th anniversary in 2027, according to Bloomberg's Mark Gurman. As part of what's being described as a "major shake-up," Apple is said to be developing a design that makes more extensive use of glass – and this could point directly to the display itself. Here's the case for Apple releasing a truly all-screen iPhone with no...
maxresdefault

iPhone 17 Pro Launching Later This Year With These 12 New Features

Sunday April 13, 2025 7:52 am PDT by
While the iPhone 17 Pro and iPhone 17 Pro Max are not expected to launch until September, there are already plenty of rumors about the devices. Subscribe to the MacRumors YouTube channel for more videos. Below, we recap key changes rumored for the iPhone 17 Pro models as of April 2025: Aluminum frame: iPhone 17 Pro models are rumored to have an aluminum frame, whereas the iPhone 15 Pro and ...
CarPlay Hero

Apple Releases Wireless CarPlay Fix

Wednesday April 16, 2025 11:28 am PDT by
If you have been experiencing issues with wireless CarPlay in your vehicle lately, it was likely due to a software bug that has now been fixed. Apple released iOS 18.4.1 today, and the update's release notes say it "addresses a rare issue that prevents wireless CarPlay connection in certain vehicles." If wireless CarPlay was acting up for you, updating your iPhone to iOS 18.4.1 should...
top stories 2025 04 19

Top Stories: iPhone 17 Pro Rumors, CarPlay Bug Fix, and More

Saturday April 19, 2025 6:00 am PDT by
This week saw rumor updates on the iPhone 17 Pro and next-generation Vision Pro, while a minor iOS 18.4.1 update delivered not just security fixes but also a fix for some CarPlay issues. We also looked ahead at what else is in Apple's pipeline for the rest of 2025 and even the 20th-anniversary iPhone coming in 2027, so read on below for all the details on these stories and more! iPhone 17 ...
iOS 18

iOS 18.5 Includes Only a Few Changes So Far

Monday April 21, 2025 11:00 am PDT by
Apple seeded the third beta of iOS 18.5 to developers today, and so far the software update includes only a few minor changes. The changes are in the Mail and Settings apps. In the Mail app, you can now easily turn off contact photos directly within the app, by tapping on the circle with three dots in the top-right corner. In the Settings app, AppleCare+ coverage information is more...

Top Rated Comments

44267547 Avatar
88 months ago
Getting the excuses in early
An “Excuse” Thats out of of Apples control? How so?
Score: 13 Votes (Like | Disagree)
Beelzbub Avatar
88 months ago
Oh I can here it now - "how do I know if my A12 processor was made before or after the TSMC virus" or "my iPhone A12 was made before the virus and my girlfriends was after the virus and my girlfriends iPhone runs hotter and crashes frequently" and "my pre virus A12 iPhone gets better battery life than mom's iPhone who got hers after the virus".
Score: 7 Votes (Like | Disagree)
zombierunner Avatar
88 months ago
Getting the excuses in early
Score: 6 Votes (Like | Disagree)
H3LL5P4WN Avatar
88 months ago
Qualcomm did it.
Score: 5 Votes (Like | Disagree)
usersince86 Avatar
88 months ago
Yikes. Surprising, but not surprising. Evidently TSMC uses PCs (not Macs) -- which is probably true in nearly all manufacturing.
Score: 5 Votes (Like | Disagree)
DNichter Avatar
88 months ago
You are always a confident person. ;)
I try not to worry too much about things I can't control. Plus, there's delay rumors every year and they rarely are true.
Score: 4 Votes (Like | Disagree)