TSMC recognized NTD2.59bn loss in 3Q18 due to the virus infection

TSMC lost NTD2.596bn due to the virus infection. (source: AFP)
TSMC lost NTD2.596bn due to the virus infection. (source: AFP)

According to the financial report, wafer foundry leader TSMC (2330-TW) (TSM-US)recognised NTD 2.596bn loss in 3Q18 due to the computer virus infection, occurred on August 3rd this year.

According to the latest financial report, the computer virus infection affected some of TSMC’s computer systems and facilities in Taiwan. As a result, wafer production was also affected.

Fortunately, all affected machines have recovered to normal level on August 6th this year. The total cost of the incident was NTD2.596bn and was listed under the operating costs in the report.

Before, TSMC expected its 3Q18 revenue and GM would all be affected by the incident. However, catalyzed by the depreciation of NTD, TSMC's 3Q18 operating performance remained stable. Its GM grew to 47.4%, decreased by 0.4 ppts QoQ.

Regarding the European Commission's investigation of TSMC's anti-trust case, TSMC told in the financial report that the European Commission has contacted with the company on September 28, 2018 and asked TSMC to provide relevant information and documents for further investigation of unfair competition in its IC sales.  

TSMC emphasized that since the relevant procedure is still at initial stage, it is hard for the company to estimate the follow-ups and the possible outcomes or impacts for now.

On the other hand, TSMC also revealed in its financial report that the company has signed contracts with several long-term suppliers of raw materials and equipments with certain amount of quantities and prices. The move was believed to ensure the stable supply of raw materials and relevant contracts, according to some experts.