TSMC's 2nm Capacity Nears 100,000 Wafers by Year-End

Taiwan-based semiconductor foundry TSMC is set to significantly ramp up its 2nm process production, targeting nearly 100,000 wafers per month by the end of 2024. This expansion aligns with the company's existing production roadmap.

The surge in demand for advanced nodes stems from AI customers seeking higher performance and lower power consumption. This has prompted the world's largest contract chip manufacturer to adjust its capacity plans accordingly.

In addition to the 2nm push, TSMC is also nearing its year-end target of 180,000 wafers per month for its 3nm process, potentially achieving this in the fourth quarter. This milestone is bolstered by strong orders from key clients including Nvidia, AMD, and Broadcom.

TSMC has increased its capital expenditure for the current year to between $60 billion and $64 billion, dedicating 70-80% of this to advanced process technologies. New 3nm fabrication plants are under construction in Taiwan, Arizona, and Japan, while existing 5nm lines are being converted to support the growing 3nm demand.