The AI boom has caused TSMC some serious problems as it looks to circumvent the tight supply of its 2nm node to meet demand. A price hike of its next-generation manufacturing process has already been reported to take effect starting from January 1, but despite customers having to pay a small premium, there appears to be no slowdown in orders. In fact, according to the latest information, TSMC’s 2nm revenue could surpass both 3nm and 5nm technologies’ cumulative revenue by the third quarter of 2026.
A total of 10 2nm facilities are expected to be constructed on TSMC’s home turf and the U.S., with production capacity reaching 80,000 to 100,000 wafers by the end of 2026
With its 2nm capacity completely booked for the entire 2026, TSMC aims to meet the high demand through the construction of three additional facilities in Taiwan, which is an undertaking that’s estimated to cost a whopping $28.6 billion. According to Liberty Times Net, TSMC’s 2nm technology has entered a ‘one man show,’ where the explosive growth of AI has caused customer orders to skyrocket. The Taiwanese semiconductor giant will also benefit from raising the prices of its cutting-edge wafers, a move that is forecasted to surpass both the 3nm and 5nm processes’ revenue by the third quarter of 2026.
The report also mentions that TSMC could have as many as 10 2nm plants established on its home turf and in the United States, but it apparently has no plans to bring this technology overseas, and is said to arrive with the 3nm node instead, a year ahead of schedule to prevent rivals like Samsung from obtaining an advantage. Currently, the wafer manufacturer’s Fab 22 plant in Kaohsiung serves as the primary production hub, with the remaining Fab 20 located in the Hsinchu Science Park.
There will be between 5 and 6 Fabs for various lithographies, with a combined output of 35,000 wafers, which is expected to increase to between 80,000 and 100,000 units by the end of 2026. The 2nm process began contributing to TSMC’s revenue from Q3 2023, initially accounting for around 6 percent of the quarterly total, and then jumped to 15 percent in the fourth quarter. Currently, the 5nm lithography commands the lion’s share of revenue, accounting for 60 percent of the total, but as the months pass, we should witness this figure slowly come down while the 3nm and 2nm processes gain traction.
Analysts estimate that TSMC’s 3nm capacity will reach its limit by 2026, with the technology having entered the ‘golden period of mass production.’ Unfortunately, it too will have to make room for 2nm wafers, which will be utilized by a bevy of customers like Apple, Qualcomm, MediaTek, AMD, NVIDIA, and countless others.
News Source: Liberty Times Net
About the author: Omar Sohail is a reporter and analyst for Wccftech's mobile section, specializing in the technology and business of the mobile industry. His expertise lies in the intricate hardware supply chain, covering developments in semiconductor manufacturing, chip lithography, and camera sensor technology.
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