TSMC’s Fab 14B Photoresist Materials Incident: $550 Million in Misplaced Income

TSMC revealed extra particulars on a photoresist incident on Friday in its Fab 14B earlier this 12 months. The contaminated chemical has broken wafers on TSMC's 12nm and 16nm traces, and the corporate now expects the impression of the occasion to scale back gross sales by a whopping $ 550 million within the first quarter.

TSMC mentioned batch of photoresist it used contained a particular ingredient that was abnormally handled, making a international polymer within the photoresist. The issue was detected late, when the wafer cycles have been decrease than anticipated. The implications of the photoresist incident on Fab 14B turned out to be extra extreme than initially calculated by TSMC. Media reviews declare that between 10,000 and 30,000 wafers have been affected and wanted to be scrapped, however TSMC has by no means confirmed any of the numbers.

In keeping with media reviews, the affected corporations embody HiSilicon / Huawei, NVIDIA and MediaTek, however TSMC didn’t disclose names of consumers struggling the incident. The one factor TSMC confirms is that it has already organized a brand new supply with its prospects.

gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw== - TSMC’s Fab 14B Photoresist Materials Incident: $550 Million in Misplaced Income

In any case, the price of the wafer is $ 550 million, and it will likely be recouped within the second quarter. Within the meantime, TSMC is selecting up "sure manufacturing" from the second quarter, producing extra income of $ 230 million within the first quarter. The end result for TSMC's first quarter outcomes is subsequently estimated at $ 7 to $ 7.1 billion, in comparison with $ 7.three to $ 7.four billion forecasted in mid-January.

To keep away from comparable conditions sooner or later, TSMC will make the inspection of incoming supplies extra thorough and improve the in-line wafer inspection. The corporate additionally famous that because of the growing complexity of main manufacturing applied sciences, higher controls might be required.

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Supply: TSMC

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