Taiwan Semiconductor Manufacturing Co. (TSMC) Chairman C.C. Wei confirmed the company is adjusting its 8-inch and mature process wafer capacities to enhance efficiency. This adjustment responds directly to prevailing market conditions. Competitor Samsung is undertaking similar capacity reductions.
These actions address a persistent market oversupply of less advanced chips. The oversupply issue is expected to continue through 2026. This forecast holds despite capacity cuts from industry leaders and price hikes from some Chinese foundries.
TSMC stock rose 1.15%. The broader Taiwanese stock market also saw gains. Market sentiment following the U.S. dropping tariff threats on Europe largely drove these gains.