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iPhone 9: Apple supplier TSMC warns of delays after it is hit by major cyber attack

The problems come just weeks before the expected release date of the new iPhone

Andrew Griffin
Monday 06 August 2018 10:39 BST
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The new iPhone X is displayed at an Apple Store on November 3, 2017 in Palo Alto, California
The new iPhone X is displayed at an Apple Store on November 3, 2017 in Palo Alto, California (Justin Sullivan/Getty Images)

A company that makes chips for Apple's iPhones has warned of delays after it was hit by a huge cyber attack.

Taiwan Semiconductor Co, or TSMC, is still recovering from the virus and it will raise costs and delay shipments, it said.

TSMC supplies chips to Apple as well as a whole host of other companies. The cyber attack came just weeks before the expected launch of the new iPhone, which is due to be released next month.

The company didn't detail the impact on Apple or other customers. Apple did not immediately return a message seeking comment.

The semiconductor company blames the outbreak on a mistake during installation of software for a new tool, which was then connected to its computer network. It says confidential information was not compromised.

It is thought that the virus that hit the company may have been Wannacry, the infamous malware that took down large parts of the NHS last year.

The company says the incident will cut third-quarter revenue by about 3 percent. But it's confident it will get that back in the fourth quarter.

Additional reporting by agencies

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