TSMC is reducing 28-nanometer (nm) chip production to prioritize advanced process technologies. Monthly wafer output at the Fab 15A facility has dropped by over 25% since the start of the year. The company is currently converting Fab 15A into a 4nm production base.
This strategic shift encourages customers to migrate toward 12nm nodes. TSMC is simultaneously increasing investments in next-generation 2nm and A14 processes. Surging demand for AI applications recently drove TSMC’s stock to record highs, lifting the broader Taiwan market.
Competitors UMC and Vanguard International Semiconductor are expected to capture the remaining 28nm market demand. TSMC anticipates the transition will enhance capital efficiency and raise average selling prices.