From Anand Tech (TSMC is the Taiwan Semiconductor Manufacturing Company - they are a fab house for many smaller chip manufacturers):
TSMC’s Fab 14B Photoresist Material Incident: $550 Million in Lost Revenue
TSMC on Friday revealed more details regarding an incident with a photoresist material at its Fab 14B earlier this year. The contaminated chemical damaged wafers on TSMC’s 12 nm and 16 nm lines, and the company now expects the full impact of the event to reduce their revenue by a whopping $550 million in the first quarter.
TSMC said that a batch of photoresist it used included a specific element which was abnormally treated, creating a foreign polymer in the photoresist. The problem was detected late when the wafer yeilds were lower than expected. As it turns out, consequences of the photoresist incident at Fab 14B were more serious than initially calculated by TSMC. There are media reports claiming that between 10,000 and 30,000 wafers were affected and had to be scrapped, but TSMC has never confirmed either of the numbers.
That is also going to hurt the chip makers who will have to wait for their product.
$550 million in the first quarter is a brutal loss.
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