Based on a report from Counterpoint Research, TSMC is set to scale down the capacity of 12 - inch mature process nodes at its Fab14 plant by 15% to 20% prior to 2028. This strategic decision is primarily driven by the need to tackle the challenge of sub - optimal capacity utilization at traditional process nodes. By doing so, TSMC aims to liberate valuable resources, which can then be channeled into supporting the advancement of cutting - edge packaging technologies.

This capacity adjustment is rooted in a comprehensive structural optimization of TSMC's global manufacturing footprint. The company is undertaking a meticulous reevaluation of its production sites with the overarching goal of boosting overall asset efficiency and enhancing operational agility.

TSMC has clarified that this capacity reduction is not a response to a substantial slump in end - market demand for mature process technologies. Instead, it is a calculated move to fortify the internal division of labor within the TSMC group by reallocating resources in a more strategic and efficient manner.