TSMC has advised customers for 8-inch wafers to use multiple sources, reports Digitimes, because demand looks like exceeding supply right through 2019.

Last week TSMC said it was looking to build a new 8-inch fab in Tainan. The last time it built an 8-inch fab was 15 years ago

The demand is coming from customers wanting niche market chips in smaller quantities.

The automotive, IoT and industrial automation applications have been driving demand for MCUs, wireless/wired connectivity chips, power management ICs, I/O solutions and analogue chips which Use 8-inch wafers..

UMC and Vanguard are also looking to expand 8-inch capacity.