ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon Print

TSMC takes $550m hit from defective chemical at chip plant

Company cuts earnings outlook after troubles supplying Apple and Huawei

TSMC's advanced site in Taiwan produces chips for companies such as Apple, Huawei, Nvidia and MediaTek. (Photo courtesy of Taiwan Semiconductor Manufacturing Co.)

TAIPEI -- Taiwan Semiconductor Manufacturing Co., the world's largest contract chipmaker, downgraded earnings forecasts on Friday owing to a defective chemical that disrupted an advanced production site for Nvidia, Huawei Technologies and other big semiconductor companies.

TSMC said the production problems will cut revenue by as much as $550 million for the quarter ending in March. The company now expects revenue of $7 billion to $7.1 billion -- the lowest since the first quarter of 2016 -- compared with the previous projection of up to $7.4 billion.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

Discover the all new Nikkei Asia app

  • Take your reading anywhere with offline reading functions
  • Never miss a story with breaking news alerts
  • Customize your reading experience

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more