The sole company responsible for manufacturing the processor in Apple's upcoming iPhone 7 and iPhone 7 Plus has reduced its shipping estimates after its facilities were damaged in an earthquake (via DigiTimes).

Taiwan Semiconductor Manufacturing Company (TSMC) suffered the damage to its plants on February 6 when a 6.4-magnitude quake struck the southern part of the country.

Initially, TSMC reported that the damage incurred would reduce the amount of chips it could ship by less than 1 percent. However, this morning the company revised that estimate and said shipment numbers could be affected over the 1 percent mark, but stopped short of giving a specific number.

iphone_7_render_mr

Mockup of iPhone 7 case showing flush rear camera and no antenna bands across rear

Despite the earthquake, TSMC stated it is confident of hitting target revenues of $5.9-6.0 billion in the first quarter of 2016. Whether the damage will affect production of the iPhone 7 chip, which is expected to begin in June, remains unclear.

TSMC reached a deal with Apple only last week to become the sole manufacturer for the iPhone 7's processor, partly thanks to its 10-nanometer manufacturing process. Apple used both Samsung and TSMC to manufacture the chips for the iPhone 6s, perhaps in a bid to lower risks, but the arrangement caused some controversy after benchmarks indicated performance variances between the companies' processors.

The processor in the iPhone 7 and iPhone 7 Plus is likely called the A10. Both devices are expected to debut in September. Leaks of the phones' design suggest that it may have a flush rear camera and a lack of antenna bands on its back. Other rumors indicate that the 7 Plus may feature a dual-lens camera system and that it may be waterproof and not have a headphone jack.

Tags: A10, TSMC
Related Forum: iPhone

Top Rated Comments

130 months ago
This is the risk of using one manufacturer. If something goes wrong to effect supply, cutting Samsung out will not seem like such a smart move.
Score: 5 Votes (Like | Disagree)
macs4nw Avatar
130 months ago
Earthquakes have a thing for delaying iPhones.
I realize you're probably saying that in jest, but it's just that a lot of the manufacturing of the components that go into our tech goodies, takes place near the "Ring of Fire ('https://en.wikipedia.org/wiki/Ring_of_Fire')" where roughly 90% of the world's earthquakes occur, often also accompanied by tsunamis and massive flooding. Remember the massive flooding in Thailand ('http://www.nytimes.com/2011/11/07/business/global/07iht-floods07.html') which caused widespread HDD shortages in 2011-2012?

Those of us who don't live near there can count their blessings, and I for one will gladly suffer some occasional delays to my material indulgences as I watch untold human suffering on the news from the safety of my living room, when another disaster hits those unfortunate people.
Score: 3 Votes (Like | Disagree)
ArtOfWarfare Avatar
130 months ago
This 1% estimate was before. Now the estimate is bigger and they aren't saying by how big.
They said it was going to impact them by less than 1%. Later, they said it might be over 1%.

Might be over 1% suggests to me it's probably not a lot more than 1%.
Score: 2 Votes (Like | Disagree)
130 months ago
So Apple's first step towards getting rid of Samsung as an essential supplier backfires immediately, interesting.

They said it was going to impact them by less than 1%. Later, they said it might be over 1%.

Might be over 1% suggests to me it's probably not a lot more than 1%.
Or, it's just carefully worded to smooth over the more serious reality, like how all Apple Support articles regarding widespread hardware issues begin with "We've discovered that a very small number of units are experiencing issues with..."
Score: 1 Votes (Like | Disagree)
AppleWarMachine Avatar
130 months ago
you know Samsung is going to make some chips for Apple eventually, they always coming calling for some reason...can't live without them :D
Score: 1 Votes (Like | Disagree)
Glideslope Avatar
130 months ago
With smart phone growth flattening out this might not have a major impact.
True. It will be interesting to see the volume of 5se's moved. IMO, the "rumored" 30% cut in the 6s is to allow for upcoming tidel wave of demand for the 5se.
Will this effect the 7? It will be interesting to watch. The 7 will need to be very compelling IMO (even though I'll be selling my 6 for one no matter what.) :apple:
Score: 1 Votes (Like | Disagree)

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