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

businezguy Avatar
120 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
120 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
120 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)
Lennholm Avatar
120 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
120 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
120 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)

Popular Stories

iphone 16 display

iPhone 17's Scratch Resistant Anti-Reflective Display Coating Canceled

Monday April 28, 2025 12:48 pm PDT by
Apple may have canceled the super scratch resistant anti-reflective display coating that it planned to use for the iPhone 17 Pro models, according to a source with reliable information that spoke to MacRumors. Last spring, Weibo leaker Instant Digital suggested Apple was working on a new anti-reflective display layer that was more scratch resistant than the Ceramic Shield. We haven't heard...
apple watch ultra yellow

What's Next for the Apple Watch Ultra 3 and Apple Watch SE 3

Friday April 25, 2025 2:44 pm PDT by
This week marks the 10th anniversary of the Apple Watch, which launched on April 24, 2015. Yesterday, we recapped features rumored for the Apple Watch Series 11, but since 2015, the Apple Watch has also branched out into the Apple Watch Ultra and the Apple Watch SE, so we thought we'd take a look at what's next for those product lines, too. 2025 Apple Watch Ultra 3 Apple didn't update the...
iPhone 17 Air Pastel Feature

iPhone 17 Reaches Key Milestone Ahead of Mass Production

Monday April 28, 2025 8:44 am PDT by
Apple has completed Engineering Validation Testing (EVT) for at least one iPhone 17 model, according to a paywalled preview of an upcoming DigiTimes report. iPhone 17 Air mockup based on rumored design The EVT stage involves Apple testing iPhone 17 prototypes to ensure the hardware works as expected. There are still DVT (Design Validation Test) and PVT (Production Validation Test) stages to...
Beyond iPhone 13 Better Blue

20th Anniversary iPhone Likely to Be Made in China Due to 'Extraordinarily Complex' Design

Monday April 28, 2025 4:29 am PDT by
Apple will likely manufacture its 20th anniversary iPhone models in China, despite broader efforts to shift production to India, according to Bloomberg's Mark Gurman. In 2027, Apple is planning a "major shake-up" for the iPhone lineup to mark two decades since the original model launched. Gurman's previous reporting indicates the company will introduce a foldable iPhone alongside a "bold"...
iPhone 17 Air Pastel Feature

iPhone 17 Air Launching Later This Year With These 16 New Features

Thursday April 24, 2025 8:24 am PDT by
While the so-called "iPhone 17 Air" is not expected to launch until September, there are already plenty of rumors about the ultra-thin device. Overall, the iPhone 17 Air sounds like a mixed bag. While the device is expected to have an impressively thin and light design, rumors indicate it will have some compromises compared to iPhone 17 Pro models, including only a single rear camera, a...
iPhone 17 Pro Blue Feature Tighter Crop

iPhone 17 Pro Launching Later This Year With These 13 New Features

Wednesday April 23, 2025 8:31 am PDT by
While the iPhone 17 Pro and iPhone 17 Pro Max are not expected to launch until September, there are already plenty of rumors about the devices. Below, we recap key changes rumored for the iPhone 17 Pro models as of April 2025: Aluminum frame: iPhone 17 Pro models are rumored to have an aluminum frame, whereas the iPhone 15 Pro and iPhone 16 Pro models have a titanium frame, and the iPhone ...
iphone 17 air iphone 16 pro

iPhone 17 Air USB-C Port May Have This Unusual Design Quirk

Wednesday April 30, 2025 3:59 am PDT by
Apple is preparing to launch a dramatically thinner iPhone this September, and if recent leaks are anything to go by, the so-called iPhone 17 Air could boast one of the most radical design shifts in recent years. iPhone 17 Air dummy model alongside iPhone 16 Pro (credit: AppleTrack) At just 5.5mm thick (excluding a slightly raised camera bump), the 6.6-inch iPhone 17 Air is expected to become ...