TSMC to Cut Fab14 Mature-Node Capacity by 15%-20% to Reflect Changing Demand Mix

Jan. 26, 2026 – 

By Jake Lai, Counterpoint

• The company is expected to reduce Fab14’s 12” mature-node capacity by 15%-20% by 2028.
• The move primarily aims to address structurally weak utilization at legacy nodes while freeing resources to support the expansion of advanced packaging technologies.
• To ensure continuity of supply for customers reliant on mature and mid-range nodes, TSMC is increasingly leveraging overseas fabs and affiliated manufacturing platforms.

TSMC has outlined a strategic realignment of mature-node capacity at its Fab14 facility, reflecting disciplined capital allocation and long-term portfolio optimization. According to Counterpoint Foundry Service’s Monthly Intelligence Report, the company is expected to reduce Fab14’s 12” mature-node capacity by 15%-20% by 2028, primarily addressing structurally weak utilization at legacy nodes while freeing resources to support the expansion of advanced packaging technologies.

Going by Counterpoint’s Foundry Market Supply Tracker data, this capacity adjustment is driven by persistently low UT Rate at 40-90nm nodes, where it has remained at ~80% levels with limited visibility for recovery. In contrast, demand for advanced packaging solutions continues to intensify. As a result, TSMC is prioritizing the reallocation of cleanroom space, equipment and capital toward higher-value manufacturing segments.

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