Taiwan Semiconductor Manufacturing Company, Apple’s supplier for the A-series chipsets on the iPhones, is expected to lose out on $550 million in sales this quarter.

The company told investors in a forecast revision that it had to take out a higher number of 12nm and 16nm wafers due to customers this quarter — likely for mid-range offerings to competing firms like Huawei and MediaTek — as a result of a substandard chemical treatment. It looks to make up those orders in the second quarter, though, and rake back the lost $550 million in the process.

Digitimes reports TSMC will offset the loss in this quarter with an expected peak in demand for other products that could add $230 million to its coffers. Overall, the company looks to make up to $7.1 billion in revenue with operating turnover of up to $2.2 billion.

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