Taiwan Semiconductor to phase out 6-inch wafer manufacturing in 2 years – report

Taiwan Semiconductor Manufacturing (NYSE:TSM) will phase out its 6-inch wafer production business over the next two years and continue consolidating its 8-inch wafer manufacturing capacity to improve efficiency, Reuters reported.

TSM told the news agency that the decision was made following a review and was based on market conditions, and aligned with the company’s long-term business strategy, the report added.

TSM did not immediately respond to a request for comment from Seeking Alpha.

The company noted that it was working with customers to make sure of a smooth transition and remained committed to meeting their requirements during the period.

TSM added that the initiative would not impact its previously announced financial goals.

The company has only one 6-inch wafer fab and four 8-inch wafer fabs in Taiwan for mature-node chip production. Meanwhile, its advanced-node production for customers like Apple (AAPL) and Nvidia (NVDA) is carried out in 12-inch fabs, the report noted.