Core Viewpoint - TSMC has announced multiple capacity adjustment plans, including exiting GaN foundry business within two years and integrating 8-inch old fabs to enhance production efficiency and reduce operational costs while increasing competitiveness in advanced processes [1][2]. Group 1: Capacity Adjustments - TSMC will close its 6-inch fab in Hsinchu Science Park and integrate the 8-inch fabs (Fab 3, Fab 5, Fab 8) to alleviate labor shortages and improve capacity utilization [2]. - Approximately 30% of the affected employees will be relocated to the Southern Science Park and Kaohsiung facilities as part of the restructuring efforts [2]. Group 2: Strategic Initiatives - The 6-inch fab will be transformed into a CoPoS panel-level packaging production base, while the 8-inch fabs will focus on mass production of self-developed EUV pellicles, which are critical for maintaining lithography precision in advanced processes [2]. - TSMC's self-developed EUV pellicles aim to address industry challenges related to traditional organic materials, which have insufficient transparency and stability, thereby reducing production costs and cycle times [2]. Group 3: Industry Context - Over the past decade, TSMC has made record capital investments in advanced processes, but the returns from solely relying on capital investments are diminishing as Moore's Law approaches physical limits [3]. - The high cost of EUV equipment, with a single EUV scanner priced at approximately $150 million and High-NA versions exceeding $350 million, has led TSMC to slow down the procurement of High-NA devices and accelerate the development of key supporting technologies like EUV pellicles [3].