Record-Breaking TSMC 2nm Production to Surpass 3nm Capacity Amid Soaring Demand from Major Tech Companies

TSMC’s upcoming 2nm process technology is set to revolutionize the semiconductor landscape, with the Taiwanese manufacturer poised to increase production capacity to meet soaring industry demand.

TSMC’s 2nm Process: The Next Major Revenue Stream for the Tech Giant

The semiconductor giant Taiwan Semiconductor Manufacturing Company (TSMC) is gearing up to launch its cutting-edge 2nm (N2) process, which promises to be the most advanced—and costly—technology in its portfolio. Despite some reservations within the tech industry regarding the shift to 2nm, TSMC is determined to ramp up production volumes dramatically to cater to the expected demand surge.

Recent estimates from DigiTimes suggest TSMC plans to manufacture a staggering 200, 000 wafers per month by 2028, a figure that surpasses the production targets set for its existing 3nm process.

Report: TSMC sees 2nm orders surge; related capacity to reach 200, 000 units by 2028. TSMC has continued to accelerate its development of sub-2nm processes despite market expectations that clients would turn cautious with their 2nm orders.pic.twitter.com/Pew1PP4NqX

— Jukan (@Jukanlosreve) July 24, 2025

TSMC aims to launch mass production of its 2nm technology in the second half of 2025, starting with an initial capacity of 40, 000 units. The anticipated market demand is notably diverse, driven largely by the increasing need for advanced AI capabilities, fulfilling requirements from industry leaders such as NVIDIA and AMD. TSMC expects the appetite for 2nm chips may even eclipse that of 3nm, indicating a burgeoning production potential.

However, the high integration costs associated with TSMC’s 2nm process could lead to hesitancy among potential adopters. For instance, NVIDIA may stick with its 3nm architecture for the Blackwell Ultra AI series, while AMD is likely to rely on 3nm for the Instinct MI350 AI accelerator lineup. The first implementation of 2nm could be seen with the launch of Rubin and the Instinct MI400 series, albeit at a premium price. Notably, a significant segment of the anticipated 2nm demand is expected to stem from ASIC developers, including prominent firms like xAI, Google, and Meta.

As TSMC capitalizes on the ongoing AI boom, the company is likely to maintain its competitive edge in the semiconductor market. With rivals such as Intel and Samsung facing challenges in their technological offerings, TSMC continues to secure a substantial share of the industry.

Source & Images