After the earthquake last week (Earthquake Rocks Taiwan Production Base), TSMC has said that the impact on its production would be larger than originally thought. Wafer shipments had been estimated to fall less than 1%; however, the decline is now thought to be more than 1%, due to the damage to Fab 14.
Despite the earthquake, TSMC is confident that it will hit its target consolidated revenues of between NT$198 billion and NT$201 billion ($5.9 – $6 billion) for Q1’16.
Innolux has also revealed more information about the disruption to its supply chain, as a result of the earthquake. It says that it will suffer shortages of 39.5″ and 58″ LCD TV panels, likely until Q2’16.
Industry sources have said that Huawei is likely to shift its smartphone panel orders away from Innolux, instead assigning them to BOE and Tianma, due to production disruption at the L5 fab. Innolux mainly uses this fab to produce 5″ panels for Huawei.