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TSMC says chemical defect hurts production

FILE PHOTO the logo of Taiwan Semiconductor Manufacturing Co (TSMC) is seen at the company headquarters in Hsinchu, Taiwan-August 31, 2018. REUTERS/Tyrone Siu/File Photo

(Reuters) – Taiwan Semiconductor Manufacturing Co. Ltd., a contract chipmaker for Apple Inc. and Qualcomm, said Monday a malfunction of the chemical used in the production of chips hit production at one of its plants.

The world’s largest contract chipmaker, is the investigation into the cause of the problem is with the Fab 14B of the production site in the south of Taiwan, Nikkei reported on Monday.

The company said that most of the damaged chips in the first and second quarter.

TSMC’s customers include Advanced Micro Devices Inc., Broadcom Inc., Huawei Technologies, Intel Corp, Nvidia Corp, Qualcomm Inc, Apple Inc, among others.

None of the above companies responded to Reuters request for comment.

Earlier this month the company cut its full-year capital expenditures and the forecast its sharpest quarterly revenue drop in a decade, to participate in a series of high-tech companies warning of a slowdown in global smartphone demand.

Reporting by Vibhuti Sharma in Bengaluru

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