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.

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.