Taipei: Taiwan Semiconductor Manufacturing Co. (TSMC) has announced plans to phase out its 6-inch wafer business within two years. The move aims to consolidate its 8-inch wafer resources and optimize overall operations to improve efficiency.
According to Focus Taiwan, the decision aligns with market needs and TSMC’s long-term development strategies. The company is collaborating closely with clients to ensure a smooth transition, reassuring them of its commitment to meeting demand and maintaining value for business partners and the market.
TSMC confirmed that the phase-out of the 6-inch wafer business will not affect its sales guidance for this year. In a recent investor conference, TSMC projected a 30% sales growth in 2025 compared to the previous year, driven by strong global demand for artificial intelligence applications.
Currently, TSMC operates multiple fabs, including four 12-inch gigafabs, four 8-inch wafer fabs, and one 6-inch wafer fab in Taiwan. The company and its subsidiaries are expected to have a production capacity of 17 million 12-inch equivalent wafers in 2024. Although TSMC has not disclosed plans for the phased-out 6-inch wafer plant, local media reports suggest it may be converted into an advanced IC assembly site to cater to the growing AI application market.
Additionally, TSMC’s two-day board meeting concluded with the approval of approximately US$20.66 billion in capital appropriations to fulfill long-term capacity plans. These funds will support advanced technology capacity installation, advanced packaging, mature and specialty technology capacity, fab construction, and fab facility systems installation.
The board also authorized the issuance of up to NT$60 billion (US$1.998 billion) in unsecured corporate bonds to finance capacity expansion and green initiatives. To reduce foreign exchange hedging costs, TSMC plans a capital injection of up to US$10 billion into its wholly-owned subsidiary, TSMC Global.
TSMC’s board approved a cash dividend of NT$5 per share for the second quarter, consistent with the first quarter’s payout. The ex-dividend date is set for Dec. 11, with cash dividends distributed on Jan. 8, 2026. TSMC Chairman C.C. Wei is anticipated to receive NT$34.12 million from his 6.83 million shares.
The National Development Fund, TSMC’s largest shareholder, holding a 6.38% stake, is set to receive NT$8.27 billion in cash dividends. TSMC transitioned to quarterly cash dividends in 2019, a move analysts suggest encourages longer stock retention by investors.