TSMC is Doubling Down on Expansion, with 2nm First-Year Output Increasing by Approximately 45%
TSMC Senior Vice President Hou Yongqing stated that to meet the explosive demand for AI and high-performance computing (HPC), TSMC is advancing its expansion plans at "double speed" compared to the past. This year, TSMC will have five 2nm fabs simultaneously entering the ramp-up phase, marking the most aggressive expansion record in history. As a result, the first-year output of 2nm will increase by approximately 45% compared to the same period for 3nm.
During the earnings conference call, TSMC mentioned that to meet the strong demand for AI applications, the company is increasing capital investment to expand 3nm capacity.
The 3nm fab in the Tainan Science Park is expected to enter mass production in the first half of next year; the second factory in Arizona, USA, has been completed and is expected to begin mass production of 3nm wafers in the second half of next year; and the second factory in Kumamoto will also include 3nm process technology, with mass production expected in 2028.
In addition, TSMC plans to build the A10 fab in Tainan, Taiwan, with P1 to P4 areas used for the development of 1nm and below advanced process technologies, expected to start pilot production in 2029, with an initial monthly capacity of 5,000 wafers.