Taiwan Semiconductor will stop producing 6-inch wafers within two years, and the efficiency improvement of 8-inch capacity will not affect financial targets
Taiwan Semiconductor will gradually stop 6-inch wafer production over the next two years and integrate 8-inch wafer manufacturing capacity to improve efficiency. This decision is based on market dynamics, aligns with long-term development strategies, and will not affect financial targets. Taiwan Semiconductor expects to raise its sales growth forecast from 20% to 30% this year, with third-quarter revenue expected to be between $31.8 billion and $33 billion. The company plans to maintain capital expenditures of $38 billion to $42 billion and advance global capacity expansion projects
According to Zhitong Finance APP, Taiwan Semiconductor (TSM.US) will gradually cease its 6-inch wafer production business over the next two years and continue to integrate its 8-inch wafer manufacturing capacity to enhance operational efficiency. The company stated in an email that this decision is based on an assessment of market dynamics and aligns with the company's long-term development strategy.
It has been disclosed that TSMC currently operates only one 6-inch wafer factory and four 8-inch wafer factories in Taiwan, primarily for the production of chips using mature process technology. Notably, this capacity adjustment will not affect the financial targets previously announced by the company. TSMC emphasized that it will maintain close collaboration with customers to ensure a smooth and orderly business transition while continuously meeting customer demands during the transition period.
The chip manufacturing giant has raised its sales growth forecast in U.S. dollars for this year from the original mid-range of 20% to approximately 30%, while also expecting strong revenue growth in the third quarter, with a range of $31.8 billion to $33 billion, significantly up from $23.5 billion in the same period last year and $30 billion in the previous quarter.
Last Friday, TSMC announced that its revenue for July reached NT$323.2 billion (approximately $10.8 billion), a year-on-year increase of 26%, further confirming that investments in the artificial intelligence sector are accelerating.
Additionally, it has been reported that TSMC produces advanced process chips for major global clients such as Apple (AAPL.US) and NVIDIA (NVDA.US) at its 12-inch wafer factories. TSMC plans to maintain its capital expenditure plan of $38 billion to $42 billion this year and continue advancing its $100 billion capacity expansion projects in Arizona, Japan, Germany, and Taiwan.
This strategic adjustment focuses on optimizing resource allocation, further enhancing production efficiency through the integration of mature process capacity, while the advanced process business will not be affected by this adjustment and will continue to serve as a key support for the company's core competitiveness
