Taiwan Semiconductor Manufacturing Co (NYSE:TSM) will shut down its 6-inch wafer manufacturing business over the next two years and consolidate its 8-inch wafer production capacity to boost efficiency, the company said Tuesday.
Taiwan Semiconductor operates one 6-inch wafer fab and four 8-inch wafer fabs in Taiwan for mature-node chip production. At the same time, advanced-node manufacturing for clients like Apple (NASDAQ:AAPL) and Nvidia (NASDAQ:NVDA) takes place in 12-inch fabs.
The Taiwanese contract chipmaker told Reuters it made the decision after a thorough evaluation of market conditions and aligned it with its long-term business strategy. It said the move would not affect previously announced financial targets.
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In July, the chipmaker forecast a roughly 30% increase in 2025 revenue in U.S. dollar terms.
Taiwan Semiconductor stock gained 24% year-to-date, topping the PHLX Semiconductor Index’s over 17% returns as U.S. Big Tech giants like Microsoft (NASDAQ:MSFT), Apple, and Meta Platforms (NASDAQ:META) keep investing in their AI ambitions.
Last week, Taiwan Semiconductor reported consolidated net revenue of about 323.17 billion New Taiwanese dollars (roughly $10.66 billion) for July 2025, rising 22.5% quarter-over-quarter on strong artificial intelligence demand.
Revenue climbed 25.8% year-over-year, and January–July 2025 sales reached 2.1 trillion New Taiwanese dollars (about $69.3 billion), up 37.6% year-over-year.
On August 7, the stock jumped about 5% in overnight trade after Taiwanese officials confirmed the chipmaker’s exemption from President Donald Trump’s proposed 100% tariffs on semiconductor chips.
National Development Council chief Liu Chin-ching told parliament that the chipmaker qualifies because it operates U.S. factories, including Arizona fabs, under its $165 billion investment commitment.
The exemption eased investor concerns as Taiwan Semiconductor supplies chips to major U.S. clients like Apple and Nvidia. CEO C.C. Wei acknowledged U.S. tariffs as “indirect headwinds” but said AI chip demand “consistently outpaces supply,” keeping the company well-positioned despite trade tensions.
Price Action: TSM stock is trading higher by 0.50% to $245.52 premarket at last check Wednesday.
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