Taiwan Semiconductor Manufacturing Co. (TSMC) is significantly cutting 28nm chip production at its Fab 15A facility. Output at the site has decreased by more than 25% since the start of the year. Monthly wafer production dropped from approximately 200,000 units to 150,000 in June.
TSMC is converting Fab 15A into a 4nm production base to address high demand for artificial intelligence and high-performance computing chips. This transition is part of a broader strategy to prioritize next-generation technologies, including 2nm and A14 processes.
Industry competitors UMC and Vanguard International Semiconductor (VIS) are expected to absorb the vacated 28nm demand. This strategic shift coincides with TSMC shares reaching a record high, driven by market optimism regarding the future of AI.