TSMC Accelerates 2nm Chip Production to Meet AI Demand

Taiwan Semiconductor Manufacturing Co. is accelerating the expansion of its 2-nanometre (2nm) manufacturing capacity to keep pace with surging demand for artificial intelligence and high-performance computing chips. The company now projects monthly capacity will reach approximately 120,000 wafers by the end of 2026, an increase over previous estimates of 90,000 to 100,000 wafers.

Major customers, including Apple, Nvidia, Advanced Micro Devices, Qualcomm, and MediaTek, have increased their orders for 2nm capacity by 10% to 20%. To support this growth, the company is bringing five 2nm fabrication plants online this year, with two located in Hsinchu and three in Kaohsiung.

Senior Vice President Hou Yung-ching stated that first-year 2nm wafer output will be 45% higher than the first-year output of 3nm technology seen in 2023. Capacity is expected to grow at a compound annual rate of 70% from 2026 to 2028.