Apple’s iPhone 7 chip maker Taiwan Semiconductor Manufacturing Company (TMSC) warned that the massive earthquake that recently hit Taiwan could endanger future operations.
As we wrote a couple of days ago, TMSC managed to produce the technology needed for the next generation iPhone and actually managed to beat Samsung.
It was expected that TMSC will take over about 90% of A10 production – the processor that should power the next-gen iPhone. However, the company issued a warning that its facilities took a larger hit than previously estimated, caused by the recent earthquake that rattled Taiwan.
The earthquake struck Taiwan earlier this month when the chip manufacturer stated that “it does not expect the earthquake to affect first quarter 2016 by more than 1 percent”. According to the newest statement, issued a couple of days ago, “more than 1 percent” will surely be affected. It is unknown if the company is in a greater trouble.
The timing of the earthquake couldn’t be worse for TMSC since only last week the company struck a deal with Apple to be the exclusive manufacturer of the processor for the iPhone 7 and iPhone 7 Plus. The next generation iPhone should be introduced in September.
Publicly traded companies like TMSC are required to disclose when they have a material event that is expected to greatly change a company’s financial picture. However, TMSC has not done that yet.
