TAIPEI (Reuters) -Taiwan Semiconductor Manufacturing Co. (TSMC) will phase out its 6-inch wafer manufacturing business over the next two years and continue consolidating its 8-inch wafer production capacity to improve efficiency, the company said on Tuesday.
The decision, which TSMC told Reuters in a statement was made after a thorough evaluation, was based on market conditions and aligned with the company’s long-term business strategy.
TSMC said it was working closely with customers to ensure a smooth transition and remained committed to meeting their needs during the period.
The company said the move would not affect its previously announced financial targets.
TSMC has only one 6-inch wafer fab and four 8-inch wafer fabs in Taiwan for mature-node chip manufacturing, while its advanced-node manufacturing for customers such as Apple and Nvidia is carried out in 12-inch fabs.
TSMC in July forecast its revenue in U.S. dollar terms would increase by about 30% this year.
(Reporting by Wen-Yee Lee. Editing by Emelia Sithole-Matarise and Mark Potter)
