February 19, 2026 -
By Neil Tyler, New Electronics
TSMC is reportedly preparing to significantly reduce its 8‑inch wafer production as it intensifies investment in advanced manufacturing nodes to meet soaring demand from the AI and high‑performance computing (HPC) sectors.
Industry sources from IC design houses say the foundry, which currently manufactures around 5 million 8‑inch wafers each year, is planning to transfer as much as 80% of that output to its affiliate, Vanguard International Semiconductor (VIS), over the coming years.
The move is expected to substantially expand Vanguard’s 8‑inch capacity. Reports indicate the company is already running at full utilisation and, following selective price adjustments in the first quarter, has informed customers of a second round of price increases from April. These rises are understood to be in the region of 10–15%.