Key iPhone supplier is hamstrung with the debilitating WannaCry worm

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A key chip supplier for iPhones, Taiwan Semiconductor Manufacturing Co., said the virulent WannaCry ransomware worm infected its production lines over the weekend. The incident shows how the malicious malware continues to leave a wake of $100 million-plus losses 15 months after it first took flight.

"This virus outbreak occurred due to misoperation during the software installation process for a new tool, which caused a virus to spread once the tool was connected to the company's computer network," TSMC officials wrote in a statement published Sunday. In statements made on Monday, the officials identified the malware as WannaCry, which gained international attention in May 2017 when it shut down computers worldwide. The company said it expected the disruption to lower third-quarter revenue by as much as 3 percent. With the chipmaker previously forecasting revenue in the quarter to be $8.45 billion to $8.55 billion, the hit to revenue could be as high as $256 million.

TSMC said it had 80 percent of affected chip fabrication systems back online on Sunday and expected to restore the remainder by Monday. The shutdown comes at a critical time for Apple, which accounts for 21 percent of TSMC's revenue, according to Bloomberg News. Apple is reportedly planning to release three new iPhone models by year's end. It's not yet clear if the shutdown might affect the chip output Apple relies on for the new devices. Shares of Apple stock were trading up about 0.4 percent on Monday as this post was being prepared.

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