TSMC to Phase Out 6-Inch Wafer Business to Improve Efficiency

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is one of the best high-volume stocks to invest in. On August 12, TSMC announced a 2-year plan to phase out its 6-inch wafer manufacturing business. The company stated that this decision, made after a thorough evaluation of market conditions, is aligned with its long-term business strategy to improve efficiency.

TSMC is also continuing to consolidate its 8-inch wafer production capacity. The company has only one 6-inch wafer fabrication plant and four 8-inch fabs in Taiwan, which are used for mature-node chip manufacturing. The production of advanced-node chips for major customers like Apple Inc. (NASDAQ:AAPL) and Nvidia Corp. (NASDAQ:NVDA) takes place in its 12-inch fabs.

A close-up of a complex network of integrated circuits used in logic semiconductors.

According to TSMC, this move will not affect its previously announced financial targets. The company is working with its customers to ensure a smooth transition and remains committed to meeting their needs during this period. In July, TSMC projected that its revenue would increase by about 30% for the year.

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is a technology company that manufactures, packages, tests, and sells ICs and other semiconductor devices in Taiwan, China, Europe, the Middle East, Africa, Japan, the US, and internationally.

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Disclosure: None. This article is originally published at Insider Monkey.