TSMC expects 70% 2nm growth

Taiwan Semiconductor Manufacturing Co. says its 2-nanometer chip capacity will grow 70% a year from 2026 through 2028. (focustaiwan.tw) The company said five fabs will enter volume production of 2nm chips this year, with two in Hsinchu and three in Kaohsiung. Production of 2nm chips began in the fourth quarter of 2025. (focustaiwan.tw) Cliff Hou, TSMC’s senior vice president and deputy co-chief operating officer, said first-year 2nm output is expected to be 45% higher than 3nm output was in its first year in 2023. (focustaiwan.tw) A “2nm” chip is a new manufacturing generation that packs more transistors into the same area, which lets chip designers push speed higher or power use lower. TSMC is aiming those gains at artificial intelligence, high-performance computing and mobile chips. (pr.tsmc.com) TSMC is also widening the rest of the production chain around those chips. Hou said 3nm capacity is still growing about 25% a year, while CoWoS advanced packaging is growing more than 80% annually and SoIC more than 90%. (focustaiwan.tw) Outside Taiwan, Hou said TSMC’s first Arizona fab is expected to raise output by 80% in 2026 from 2025, and its first Kumamoto fab in Japan by 130%. (focustaiwan.tw) The company’s April 16 earnings report showed why TSMC is adding capacity so quickly. First-quarter net income rose 58.3% from a year earlier to NT$572.48 billion, and second-quarter revenue guidance was set at US$39.0 billion to US$40.2 billion. (investor.tsmc.com 1) (investor.tsmc.com 2) Taiwan’s trade data points the same way. The Ministry of Economic Affairs said March 2026 exports reached US$80.18 billion, up 61.8% from a year earlier, and export orders hit US$91.12 billion, up 65.9%. (moea.gov.tw) TSMC used its North America Technology Symposium on April 22 to show customers what comes after 2nm. It debuted its A13 process, said A13 is scheduled for production in 2029, and said N2U, an enhanced 2nm option, is scheduled for production in 2028. (pr.tsmc.com) The message from Santa Clara and Taipei is the same: TSMC is trying to add leading-edge capacity faster than its customers can soak it up, because AI chip demand still looks stronger than the risks around it. (pr.tsmc.com) (focustaiwan.tw)