[News] TSMC Reportedly Phases Out Legacy Production, Closing 6-Inch Fab 2 and 8-Inch Fab 5 by 2027

After announcing in early July plans to wind down its Gallium Nitride (GaN) wafer foundry services by July 31, 2027, TSMC has now confirmed—following yesterday’s board meeting—that it will also phase out 6-inch wafer production within two years and further consolidate 8-inch capacity to improve efficiency, according to the Economic Daily News and Commercial Times.

Repurposing 8-Inch Fab to Fast-Track 12-Inch Shift

Notably, beyond the 6-inch fab developments, Liberty Times reveals that TSMC had notified customers yesterday that its Fab 2 (6-inch) and Fab 5 (8-inch) will cease production by the end of 2027. For clients using these fabs, TSMC will provide final wafer schedules and assist with transfers or upgrades to 12-inch fabs, the report suggests.

Commercial Times suggests that TSMC plans to redeploy staff from its 8-inch fabs to strengthen advanced packaging capabilities as it accelerates the transition to 12-inch advanced nodes.

2025 Financial Outlook Unaffected

As per the Economic Daily News, the foundry giant stressed that the move will not impact its financial outlook. As TSMC CEO C.C. Wei said on the earnings call in mid-July, the company’s 2025 revenue is expected to jump about 30% in U.S. dollar terms, fueled by booming AI demand and uptake of its cutting-edge technologies. Its revenue for January through July totaled NT$2,096 billion, an increase of 37.6 percent compared to the same period in 2024.

Citing TSMC’s website, the Economic Daily News reports the chipmaker runs four 12-inch “GigaFabs,” four 8-inch fabs, and one 6-inch fab in Taiwan, with total 2024 capacity—counting subsidiaries—nearing 17 million 12-inch wafer equivalents.

According to the Economic Daily News, TSMC was an early mover in GaN production, introducing the technology at its 6-inch fab in 2014. As consumer demand surged, the company expanded GaN production to its 8-inch fabs in 2021 to boost capacity, and by 2015 had scaled up to produce both low- and high-voltage GaN devices, the report notes.

Other Key Board Meeting Announcements

At its August 12th board meeting, TSMC announced five major resolutions, yet conspicuously missing were several widely expected developments—such as expanded U.S. investment, collaboration with Intel Capital, or additional measures addressing the 2nm leak case, as per the Economic Daily News.

Instead, the board reportedly kept U.S. investment at existing levels and maintained the 2024 capital expenditure target of $38-42 billion, with funds earmarked for expanding advanced process and packaging capabilities.

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(Photo credit: TSMC)