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

Taiwan Semiconductor Manufacturing Company (TSMC) has announced its plan to gradually phase out 6-inch wafer production over the next two years. This strategic move is aimed at optimizing operations and enhancing efficiency. Currently, TSMC operates one 6-inch wafer fab and four 8-inch wafer fabs in the region, which are dedicated to the production of mature process chips. The company's advanced process manufacturing for clients, including Apple and Nvidia, is conducted in 12-inch wafer fabs.

The decision to phase out 6-inch wafer production is driven by the need to improve operational efficiency and align with market conditions. By consolidating its 8-inch wafer production capabilities, TSMC aims to achieve higher efficiency and better resource utilization. This move reflects the company's commitment to staying competitive in the rapidly evolving semiconductor industry.

The gradual phase-out of 6-inch wafer production is expected to have a significant impact on the semiconductor supply chain. The 6-inch wafers are primarily used for mature process chips, which are essential components in various electronic devices. As TSMC shifts its focus to more advanced processes, the industry may see a shift in the supply of these mature process chips. This could potentially lead to changes in the market dynamics for mature process chips, as other manufacturers may need to step in to fill the gap left by TSMC.

The decision to phase out 6-inch wafer production also highlights the ongoing trend in the semiconductor industry towards larger wafer sizes. Larger wafers allow for more chips to be produced per wafer, leading to higher efficiency and lower costs. By focusing on 8-inch and 12-inch wafer production, TSMC is positioning itself to take advantage of these benefits and maintain its leadership in the semiconductor industry.

TSMC has also approved a capital expenditure budget for the construction of advanced process capabilities. This investment underscores the company's commitment to staying at the forefront of semiconductor technology and meeting the growing demand for advanced chips. The capital expenditure budget will support the expansion of TSMC's advanced process capabilities, enabling the company to continue delivering cutting-edge solutions to its clients.