TSMC to Boost 2-Nanometer Production Capacity Amid Rising Demand from Major Tech Firms

Major technology companies, including Apple, NVIDIA, AMD, Qualcomm, and MediaTek, have increased their orders for Taiwan Semiconductor Manufacturing Company (TSMC)'s 2-nanometer production capacity by 10% to 20%. This surge in demand is prompting TSMC to accelerate its expansion plans, with expectations that its monthly production capacity will reach 120,000 wafers by the end of 2026, surpassing initial estimates of 90,000 to 100,000 wafers.

TSMC's Senior Vice President and Co-COO, Wei Chen-Hao, announced at the North America Technology Forum that five new 2-nanometer fabrication plants will begin operations simultaneously this year, including two in Hsinchu and three in Kaohsiung, Taiwan. The company anticipates that the wafer output in the first year of 2-nanometer production will increase by 45% compared to the first year of its 3-nanometer technology, which began in 2023.

The compound annual growth rate for 2-nanometer capacity is projected to reach 70% from 2026 to 2028. Meanwhile, TSMC's 3-nanometer capacity in the Southern Taiwan Science Park is expected to approach 180,000 wafers per month by the fourth quarter of 2026, with additional 3-nanometer fabs being established in the United States and Japan. The second U.S. fab is slated to commence mass production in the latter half of 2027.

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Source: KLEA News