TSMC: to expand 2nm monthly capacity to 100,000 wafers in 2026

TSMC: to expand 2nm monthly capacity to 100,000 wafers in 2026

Title: TSMC to Expand 2nm Monthly Capacity to 100,000 Wafers in 2026

Taiwan Semiconductor Manufacturing Company (TSMC) has announced plans to significantly increase its 2nm monthly capacity to 100,000 wafers by the end of 2026. This expansion is part of TSMC's broader strategy to meet the growing demand for advanced semiconductor technologies, particularly in the AI and high-performance computing (HPC) sectors.

According to TSMC's CEO, CC Wei, the company aims to leverage its expertise in 2nm technology to support the robust demand from its customers. The 2nm technology is expected to enter mass production in Taiwan this year, with the first set of chips intended for consumer electronics giant Apple [1]. The 4nm chips currently being produced in the US are also adequate for AI computing, but the 2nm technology offers more advanced capabilities.

TSMC's expansion plans include building multiple fabs in Taiwan and Arizona. In Taiwan, the company plans to construct 11 wafer manufacturing fabs and four advanced packaging facilities over the next several years [1]. In Arizona, TSMC has announced a $165bn investment with backing from the US government, which includes plans for six advanced wafer manufacturing fabs, two advanced packaging fabs, and a major R&D center [1].

The construction of TSMC's third fab in Arizona, which will utilize 2nm process technology, is already complete, and the company is working on speeding up the volume production schedule to meet the strong AI-related demand from its customers [2]. The company aims to complete the construction of this fab by the end of 2026 and potentially start manufacturing 2nm products at the site in the following year.

TSMC's expansion plans are driven by the increasing demand for AI chips, which is expected to continue to be strong, including the rising demand from sovereign AI [1]. The company expects its full year 2025 revenue to increase by around 30% in US dollar terms, supported by strong demand for its 3nm and 5nm technologies underpinned by growth in its HPC platform [1].

However, TSMC remains mindful of the potential tariff-related impact and is being prudent in its business planning for the second half of 2025 and 2026. The company is committed to investing for the future megatrends and scaling up its capacity to meet the needs of its leading-edge customers in smartphone, AI, and HPC applications.

References:
[1] https://www.eenewseurope.com/en/tsmc-to-top-100bn-as-it-plans-11-fabs-in-taiwan/
[2] https://wccftech.com/tsmcs-arizona-factory-for-latest-2nm-tech-could-start-production-in-2027-implies-report/