Rising Demand for TSMC’s 2nm Process Expected to Exceed 3nm Amid Rapid Production Growth by Taiwan Semiconductor Manufacturing Company

The semiconductor industry is eagerly anticipating a surge in demand for TSMC’s forthcoming 2nm processes, which are projected to surpass the excitement surrounding the 3nm technology. Reports indicate that customers regard the 2nm node as a “cost-efficient”alternative, making it an attractive option for numerous applications.

TSMC’s 2nm Process: A More Compelling Choice Compared to 3nm

TSMC’s 2nm technology is being hailed as a significant advancement in the realm of semiconductor manufacturing. As per a report by Ctee, TSMC is aiming for an impressive wafer output of up to 100, 000 units by 2026. This ambitious projection stems from a revised cost structure that makes 2nm production significantly more appealing than the previous 3nm technology. As such, TSMC anticipates a greater demand for its 2nm products.

Initial adoption of the N2 lineup is expected to be dominated by the mobile technology sector. Notably, Apple is rumored to be developing four distinct chipsets using the 2nm node. Additionally, both MediaTek and Qualcomm are poised to be early adopters, followed by high-performance computing firms such as NVIDIA and AMD, which are expected to contribute significantly to TSMC’s revenue from the 2nm process. The heightened interest in the 2nm technology can be attributed in part to the new nanosheet transistor structure that TSMC will utilize for this generation of chips.

Rapidus semiconductor facility in Japan aiming for 2nm chip mass production by 2027 amid competition from TSMC and Samsung

The use of a Gate-All-Around (GAA) transistor structure is expected to enable TSMC to maintain a similar number of extreme ultraviolet (EUV) layers as found in the 3nm process. Consequently, the cost increase typically associated with generational shifts in technology is anticipated to be less severe than previously projected. Industry leaders like NVIDIA have expressed concerns regarding the costs of employing leading-edge processes. However, the N2 and its derivatives are likely to present a more economically viable option.

TSMC’s plans for 2nm mass production are set for the second half of 2026, which could mean that adoption by major technology companies might not occur until early 2027, depending on how high-volume manufacturing evolves.

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