iPhone 7 Delay Unclear After Earthquake Impacts Chipmaker - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
Mobile
News
2/15/2016
02:06 PM
50%
50%

iPhone 7 Delay Unclear After Earthquake Impacts Chipmaker

Apple's iPhone 7 chipmaker Taiwan Semiconductor Manufacturing Company warned that the massive earthquake that recently hit Taiwan has had a greater impact on its facilities than originally estimated.

iPhone 7 Rumors: 7 That Have People Talking
iPhone 7 Rumors: 7 That Have People Talking
(Click image for larger view and slideshow.)

Apple's iPhone 7 chipmaker Taiwan Semiconductor Manufacturing Company (TSMC) issued a warning that its facilities took a larger hit than previously estimated from the recent 6.4 magnitude earthquake that rattled Taiwan, but it's unclear whether or not iPhone 7 shipments will ultimately be delayed.

When the earthquake struck earlier this month, TSMC stated it "does not expect the earthquake to affect first quarter 2016 wafer shipment by more than 1 percent." 

But on Friday TSMC revised its assessment and noted that more than 1% of its shipments will be decreased because damage to its Fab 14 was worse than previously thought, according to a Digitimes report. However, the company did not provide any specific percentages of how much greater that impact would be, the report noted.

(Image: AleksandarNakic/iStockphoto)

(Image: AleksandarNakic/iStockphoto)

Despite the decrease in shipments, the company apparently did not believe it was severe enough to warrant revising its financial outlook for the quarter. The company is still standing by its earlier assessment that "it is confident of hitting target consolidated revenues of NT $198-201 billion (US $5.9-6.0 billion) for the first quarter of 2016," Digitimes reported.

Publicly traded companies like TSMC are required to disclose when they have a material event that is expected to greatly change a company's financial picture when they are aware of the situation. TSMC has not done that yet.

[Read Is The iPhone Finally Losing Its Mojo?]

The timing of the earthquake couldn't be worse for Taiwan Semiconductor. Last week the chipmaker struck a deal with Apple to be the exclusive manufacturer of the processors for the iPhone 7 and iPhone 7 Plus, according to a MacRumors report.

The processor for the iPhone 7 and iPhone 7 Plus is anticipated to be called the A10, and the smartphones are expected to be introduced in September, MacRumors noted.

Are you an IT Hero? Do you know someone who is? Submit your entry now for InformationWeek's IT Hero Award. Full details and a submission form can be found here.

Dawn Kawamoto is an Associate Editor for Dark Reading, where she covers cybersecurity news and trends. She is an award-winning journalist who has written and edited technology, management, leadership, career, finance, and innovation stories for such publications as CNET's ... View Full Bio

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
Comments
Newest First  |  Oldest First  |  Threaded View
moarsauce123
50%
50%
moarsauce123,
User Rank: Ninja
2/19/2016 | 7:56:50 AM
Single vendor strategie is and always was flawed
This is the reason why companies need to contract with two or three vendors who each have the capacity to fill more orders short term for a limited period of time. Yes, that is more work and might cost a wee bit more, but in the end it is the path to business continuity. That is important if your business is mainly selling physical stuff. Shows again that Apple is a master in design and marketing, but utterly inept in execution.
Commentary
Gartner Forecast Sees 7.3% Shrinkage in IT Spending for 2020
Joao-Pierre S. Ruth, Senior Writer,  7/15/2020
Slideshows
10 Ways AI Is Transforming Enterprise Software
Cynthia Harvey, Freelance Journalist, InformationWeek,  7/13/2020
Commentary
IT Career Paths You May Not Have Considered
Lisa Morgan, Freelance Writer,  6/30/2020
White Papers
Register for InformationWeek Newsletters
The State of IT & Cybersecurity Operations 2020
The State of IT & Cybersecurity Operations 2020
Download this report from InformationWeek, in partnership with Dark Reading, to learn more about how today's IT operations teams work with cybersecurity operations, what technologies they are using, and how they communicate and share responsibility--or create risk by failing to do so. Get it now!
Video
Current Issue
Key to Cloud Success: The Right Management
This IT Trend highlights some of the steps IT teams can take to keep their cloud environments running in a safe, efficient manner.
Slideshows
Flash Poll