Taiwan Semiconductor Manufacturing Co. (TSMC) is reducing 28-nanometer chip production to prioritize more profitable, advanced process nodes.
Monthly wafer output at the primary 28nm facility, Fab 15A, dropped from 200,000 to 150,000 units this June. This represents a production cut of more than 25% within the current year.
The strategy addresses surging demand for high-end chips within the artificial intelligence sector. TSMC is reallocating resources toward next-generation 2nm and A14 (1.4nm) processes. Reports indicate the company is converting existing 28nm lines at Fab 15A to manufacture 4nm chips.
Competitors UMC and VIS are expected to absorb the vacated demand for mature 28nm chips. This strategic shift reinforces TSMC’s leadership in the advanced semiconductor market. The move follows strong stock performance and bullish outlooks from market analysts.