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The Taiwan Semiconductor Manufacturing Company (TSMC) might expand its 2-nanometer wafer production to 200,000 units per month by 2027, suggest supply chain sources from Taiwan. The decision to expand 2-nanometer production is due to strong market demand, with big-ticket companies such as Apple, NVIDIA and Intel driving the demand for the manufacturing technology. Should TSMC expand production to 200,000 wafers per month, the 2-nanometer output will be the highest for TSMC's sub-7-nanometer manufacturing processes.
Strong 2-nanometer Demand Could Make TSMC Expand Production To 200,000 Wafers Per Month, Says Report
According to the report from the Taiwan Economic Daily, TSMC is on track to commence 2-nanometer mass production this year. In line with previous reports, the firm is expected to scale production up to 40,000 wafers per month by the end of 2025. However, strong demand for the leading-edge chip manufacturing process could cause TSMC to grow its production capacity five times by 2027 end.
The potential production growth is due to demand from big-ticket American technology firms as well as some Taiwanese entities. The list includes NVIDIA, Apple, Intel, AMD and Mediatek. Apple typically gets the first batch of TSMC's high-end chips since its consumer-facing products do not require stringent performance. Apple is followed by firms like AMD and NVIDIA, who use the chips once TSMC has fine-tuned their production to meet heftier performance requirements.
The details suggest that TSMC will initially grow its 2-nanometer production by 1.5x next year to 100,000 wafers per month by 2026 end. Following this growth, TSMC might decide to double its 2026 2-nanometer production to touch 200,000 wafers per month by 2027 end. The decision to double production will depend on demand from its customers.
Should TSMC decide to increase its 2-nanometer production to 200,000 wafers per month by 2027 end, then the process will have become the biggest in terms of output among the firm's sub-7-nanometer technologies. At this level, the firm might utilize eight production plants, with most of the production occurring at the F22 plant in Kaohsiung, Taiwan.
The 2-nanometer technology is TSMC's most advanced chip production technology, with the fab being the only entity in the world that manufactures such chips for external customers with high yields. While TSMC's Korean rival Samsung also offers similar products, its yield constraints have enabled the Taiwanese company to secure the lion's share of the global contract chip manufacturing market.
About the author: Ramish is a seasoned technology writer and editor with more than a decade of experience. He specializes in semiconductor fabrication and market analysis. With a background in finance and supply chain management - via his bachelors in Finance and a micromasters in supply chain management from MIT - Ramish combines financial rigor with deep industry insight to deliver accurate and authoritative coverage.
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