TSMC to End 6-Inch Wafer Production in Two Years

TSMC announced on Tuesday that it will gradually phase out its 6-inch wafer manufacturing over the next two years, while streamlining its 8-inch capacity to boost efficiency. The decision, made after a thorough market assessment, aligns with the company's long-term strategy.

The chipmaker said it is working closely with clients to ensure a smooth transition and will continue meeting demand during the process. TSMC emphasized that the move will not affect its previously announced financial targets.

Industry sources reveal that the company has informed power management IC (PMIC) design partners that 6-inch fab operations are expected to end in 2027. This shift is likely to trigger an order migration for PMICs and other mature-node ICs currently produced on 6-inch lines, with affiliate Vanguard International Semiconductor (VIS) seen as a potential major beneficiary.

TSMC operates one 6-inch and four 8-inch fabs in Taiwan for mature-node production, while advanced chips for clients like Apple and NVIDIA are manufactured on 12-inch lines. In July, TSMC projected a revenue increase of about 30% in US dollar terms for this year.