News
TSMC to transfer 80 percent of 8-inch mature node capacity to subsidiary VIS to focus on AI and advanced packaging
Friday, January 23, 2026 at 02:09 PM
TSMC is accelerating its exit from mature nodes by shifting approximately 80% of its 8-inch wafer capacity, totaling about 5 million wafers annually, to its subsidiary VIS. This strategic shift aims to reallocate land, manpower, and equipment toward high-margin AI chip production and advanced packaging technologies such as CoWoS and SoIC. As part of this transition, VIS will gain increased capacity, equipment, and GaN technology licenses, positioning it to become a dominant global supplier in the 8-inch foundry market.
Context
TSMC is restructuring its manufacturing footprint by transferring approximately 80% of its 8-inch mature node capacity to its subsidiary, Vanguard International Semiconductor (VIS). This shift involves roughly 5 million wafers annually and marks TSMC’s strategic pivot away from legacy processes to prioritize high-growth AI applications. By freeing up critical floor space and personnel, the company can accelerate the expansion of its sub-3nm processes and advanced packaging technologies like CoWoS, which currently face severe supply constraints and rising facility costs.
This move positions VIS as a primary beneficiary, with its production capacity expected to scale significantly as it absorbs TSMC’s equipment, technology licenses, and order flow. VIS currently targets a monthly output of 286,000 wafers by 2025, but the integration of these legacy assets could eventually double its global footprint. For investors, this represents a dual-track optimization: TSMC sharpens its focus on high-margin AI leadership, while VIS consolidates its position as a dominant global provider of mature-node foundry services.
Related Companies
TSMC
2330