TSMC to Phase Out 6-Inch Wafer Production Over Two Years

Taiwan Semiconductor Manufacturing Co. (TSMC) announced on Tuesday that it will gradually phase out its 6-inch wafer manufacturing business over the next two years, while continuing to consolidate 8-inch wafer production to improve operational efficiency.

STRATEGIC MOVE

• The decision was made after a thorough evaluation of market conditions and aligns with TSMC’s long-term business strategy.

• The company emphasized that the transition will be managed closely with customers to ensure their needs are met.

• TSMC stated that this move will not impact previously announced financial targets.

MANUFACTURING CAPACITY

• TSMC currently operates one 6-inch wafer fab and four 8-inch wafer fabs in Taiwan for mature-node chip production.

• Advanced-node chip manufacturing, used by clients like Apple and Nvidia, is conducted in 12-inch fabs.

• In July, TSMC forecasted annual revenue growth of approximately 30% in U.S. dollar terms.

RATIONALE
The phase-out reflects market trends and efficiency goals, allowing TSMC to focus resources on more in-demand wafer sizes and advanced technologies.