Friday: Millions for bugged wallets, TSMC's billion-dollar growth with warning

Millions were stolen through compromised cryptocurrency hardware wallets, with the affected manufacturer Ledger finally speaking out after months of silence. Between October 9 and 13, at least $102 million was taken from users who had purchased these devices. According to Ledger, the attack was not systemic but targeted distribution channels, involving a criminal organization that spent millions over several months preparing the breach. These groups bought genuine Ledger devices, modified them with custom components, and reintroduced them into the supply chain via distributors in Southeast Asia. The incident highlights vulnerabilities in the supply chain for high-security products such as cryptocurrency wallets. Ledger described the attack as “the most advanced attack our industry has ever seen,” emphasizing the sophistication required to execute such a large-scale fraud. Despite this, the company attempted to reassure customers, stating that the issue was localized and not indicative of broader weaknesses in its operations. Meanwhile, TSMC, the world's leading contract chipmaker based in Taiwan, reported record revenues for the third quarter of 2026. The company’s financial chief attributed the growth to strong demand for its cutting-edge process technologies, particularly in 2- and 3-nanometer manufacturing. In the third quarter, TSMC recorded revenue of 1.49 trillion Taiwanese dollars (approximately €41.2 billion), representing a 50.9 percent increase compared to the same period last year. Operating profit rose by 75 percent to 876.4 billion TWD (around €24.2 billion), while net profit increased by 68.7 percent to 763.1 billion TWD (about €21.05 billion). The shift in market share among different fabrication technologies shows that 3-nanometer chips now account for 33 percent of wafer sales, up from 30 percent previously. This makes them the largest segment within TSMC’s product mix. Meanwhile, 2-nanometer chips have gained traction, increasing their share by five percentage points to 8 percent within three months. The shares of 5-nanometer and 7-nanometer chips have decreased slightly to 28 percent and 10 percent respectively. Looking ahead, TSMC expressed cautious optimism. Financial chief Wendell Huang stated that the fourth quarter of 2026 is expected to see continued strong demand for advanced process technologies, including the ramp-up of 2-nanometer technology. Revenue projections range between €46.7 billion and €48.4 billion, reflecting a more than 50 percent increase compared to the previous year. Gross margins are anticipated to remain stable between 65 and 67 percent. However, TSMC leadership acknowledged potential challenges beyond 2026. While current demand appears robust and there are no signs of slowing down in the ongoing AI trend, the company warned that rising component prices and macroeconomic uncertainties could affect consumer-oriented and price-sensitive end markets. As a result, the company plans cautiously for the future, aiming to balance growth with prudence. Despite these concerns, TSMC raised its revenue forecast for the year, expecting growth to reach 44 percent by the end of 2026 instead of the previously projected 40 percent. In another notable development, leap seconds, extra seconds added to keep atomic time synchronized with Earth's rotation, are being phased out. Instead, leap hours will be introduced once the Earth’s rotation slows enough to require such adjustments. This change is scheduled to take effect by May 2027, marking a significant shift in how global timekeeping is managed.