TSMC receives bad chemicals, stopping production for Nvidia and Huawei chips

Greg S

TS Evangelist

An incident involving defective chemicals has caused production to grind to a halt at TSMC's Fab 14B production site located in southern Taiwan. The facility's main customers include Nvidia, Huawei, and MediaTek.

One of the chemicals involved in photoresist processes has caused contamination of production areas. "TSMC has discovered a shipment of chemical material used in the manufacturing process that deviated from the specification and will impact wafer yield," reads the company statement.

As investigations begin into the supply chain and production problem, there are already leading candidates to point fingers at. Shin-Etsu Chemical, JSR of Japan, and Dow Chemical are the three suppliers that TSMC procures the suspected chemical from. At this time is it sill unknown which of the three companies sold TSMC a defective batch.

Revenue at TSMC may drop by up to 22 percent compared to the previous quarter, but this is largely a result of decline in mobile chip sales. This is TSMC's largest hit in the past decade, but 5G infrastructure will soon bring about great demand for more manufacturing. From a technical standpoint, TSMC remains in a strong position over the near term.

Chemical problems at the plant will not cause TSMC to lower its financial goals for this quarter, at least not right now. Pending further investigation into the issues, that could later change.

In August last year, TSMC also had its production lines interrupted by malware. That incident cost the company an estimated $84.7 million to clear up, or roughly a 1 percent loss of revenue. The WannaCry malware variant also hit factories producing chips for Apple's iPhones.

Permalink to story.

 

Uncle Al

TS Evangelist
Sounds like they were not running their batch quality checks before releasing those chemicals for use in production ..... foolish mistake with BIG implications ......
 

trparky

TS Evangelist
> Shin-Etsu Chemical
Sounds like a Chinese company. How much do you want to bet that it was them that delivered the bad batch?
 
Only the naiveté would buy into this rubbish.

Their is stock down, got sue by the investors and now tried to conjure up BS to give reason to raise their already overpriced crap.
 

misor

TS Evangelist
"impact wafer yield"... they just found another reason to jack up prices....

quality control! so would TSMC sue for sabotage against the company that delivered the defective batch?
 

mbrowne5061

TS Evangelist
Sounds like they were not running their batch quality checks before releasing those chemicals for use in production ..... foolish mistake with BIG implications ......
To be fair, when you purchase from a trusted supplier, they are the ones who typically to the QC.
Exactly. With known suppliers, written certifications of a product meeting certain agreed-upon standards is delivered with each batch.

The customer doesn't check the quality, the seller does - and then the customer hits the seller with legal action if and when the quality doesn't measure up.
 
  • Like
Reactions: Kibaruk