The company that's going to make chips for the iPhone 7 had its facilities damaged in an earthquake

The company that’s set to take over a large proportion of Apple’s chip production has been damaged in an earthquake — and the damage is worse than previously thought, DigiTimes reports.

Taiwan Semiconductor Manufacturing Company’s facilities were damaged in the February 6 Taiwanese earthquake, but the company initially said that the amount of chips it would ship would only drop by around 1%.

Now Taiwan Semiconductor Manufacturing Company is saying that the impact of the magnitude 6.4 earthquake is going to be bigger than initial reports claimed — but the company is still confident that it’s going to meet its revenue targets.

The Taiwanese company is reportedly going to produce all of the Apple A10 chips for the upcoming iPhone 7. Chip production for the current generation of iPhones is shared between Samsung and Taiwan Semiconductor Manufacturing Company, but that’s reportedly changing to cut out Samsung. There’s no indication yet as to whether the damage from the earthquake is going to affect iPhone 7 production.

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