TSMC: substandard chemical incident won't affect 1Q19 revenue guidance

TSMC(2330-TW) confirmed today on January 29th that due to the use of defective chemicals, the wafer yield was affected at the Fab 14B on January 19th. The problem was caused by a batch of photoresist chemicals, and it has been disabled by the company immediately after the incident. In the past 10 days, TSMC have been closely communicated with all affected customers about the details such as replenishment and delivery. The company reiterated that it will not affect its 1Q19 revenue guidance.

TSMC stressed that in the past 10 days after the incident, the company has been communicated with all customers affected by the incident about replenishment and delivery details. Based on the capacity utilization rate of 12/16nm production at its Fab 14B, it is expected that most of the affected wafers will be replenished in 1Q19, and the rest can be replenished in the 2Q19. TSMC reiterated that the incident will not affect its 1Q19 revenue guidance.