TAIPEI, Aug 12 (Reuters) - Taiwan Semiconductor

Manufacturing Co ( TSM ) will gradually exit its 6-inch

wafer manufacturing business over the next two years and

continue consolidating its 8-inch wafer production capacity to

improve efficiency, the company said on Tuesday.

The decision, which TSMC told Reuters in a statement was

made after a thorough evaluation, was based on market conditions

and aligned with the company's long-term business strategy.