Taiwan Semiconductor to Discontinue 6-Inch Wafer Manufacturing Over Two Years

Taiwan Semiconductor Manufacturing (NYSE:TSM) will phase out its 6-inch wafer production business over the next two years and consolidate its 8-inch wafer manufacturing capacity to improve operational effectiveness. The company aims to enhance efficiency and competitiveness in the face of declining demand for smaller wafers.

Taiwan Semiconductor Manufacturing (TSMC), a leading global semiconductor manufacturer, has announced its plan to phase out its 6-inch wafer production business over the next two years. This decision, which aligns with the company's long-term business strategy, aims to enhance operational efficiency and competitiveness in the face of declining demand for smaller wafers [1].

TSMC, which has only one 6-inch wafer fab and four 8-inch wafer fabs in Taiwan for mature-node chip production, will consolidate its 8-inch wafer manufacturing capacity. The company has stated that this move is based on a thorough evaluation of market conditions and is intended to improve overall efficiency [2].

The transition to 8-inch wafers, which are larger and more efficient, is part of TSMC's broader strategy to stay competitive in the semiconductor industry. The company is also expanding its advanced-node production for customers like Apple (AAPL) and Nvidia (NVDA) in 12-inch fabs [2].

In parallel, the Indian government has been actively promoting semiconductor manufacturing to boost the domestic electronics industry. The Union Cabinet recently approved four new semiconductor projects worth Rs 4,594 crore, including the country's first commercial compound fab and an advanced glass-based substrate semiconductor packaging unit. These projects aim to create a comprehensive semiconductor ecosystem in India, with applications in various sectors such as defense, electric vehicles, and consumer appliances [3].

References:
[1] https://www.reuters.com/world/asia-pacific/tsmc-phase-out-6-inch-wafer-production-over-two-years-2025-08-12/
[2] https://seekingalpha.com/news/4484426-taiwan-semiconductor-to-phase-out-6-inch-wafer-manufacturing-in-2-years---report
[3] https://economictimes.indiatimes.com/tech/technology/four-new-semiconductor-units-worth-rs-4594-crore-to-come-up-in-odisha-ap-punjab-union-minister-ashwini-vaishnaw/articleshow/123264210.cms