TSMC’s 2nm capacity could reach 120,000 wafers a month by year-end

TSMC’s 2nm manufacturing capacity could reach approximately 120,000 wafers a month by the end of 2026, above previous industry estimates of 90,000 to 100,000, as it accelerates expansion amid stronger customer orders, EconoTimes reported on 28 September, citing EDN.

Customer orders and the 120,000-wafer projection

Apple, Nvidia, AMD, Qualcomm and MediaTek have increased their orders for TSMC’s 2nm process family by between 10 and 20 per cent, EconoTimes reported, citing industry sources quoted by EDN. The reported increases cover a group of customers whose products include AI and other computing devices.

Demand for advanced chips used in AI accelerators, data centres, smartphones and other high-performance devices is driving the expansion, according to the report. Technology companies’ investment in AI infrastructure is also increasing demand for chips that combine computing performance with improved power efficiency.

The projected monthly capacity of approximately 120,000 wafers is a year-end figure, rather than a current production rate. Earlier industry estimates put monthly 2nm capacity at between 90,000 and 100,000 wafers by the end of 2026. The higher projection accompanies the reported rise in customer orders.

TSMC supplies advanced chips to customers developing AI and computing products, including Nvidia, AMD and Apple. The reported orders concern its 2nm process family, while the year-end projection concerns the manufacturing capacity available for that technology across its expanding production footprint.

Five TSMC plants in Hsinchu and Kaohsiung

TSMC is bringing five 2nm fabrication plants online during 2026, senior vice president Hou Yung-ching said, according to EconoTimes. Two are in Hsinchu and three are in Kaohsiung. The additional facilities form part of the company’s manufacturing expansion for the anticipated increase in 2nm production.

The plant count places the capacity projection alongside a stated production plan: five facilities coming online in the same year that monthly capacity could reach approximately 120,000 wafers. Hou’s account identifies both production locations, with Kaohsiung accounting for three of the plants and Hsinchu for two.

The expansion comes as the customers named in the reported order increase pursue chips for different end products. AI accelerators and data centres are among the applications associated with demand for advanced semiconductors, alongside smartphones and other high-performance devices.

Hou’s 3nm comparison and 2028 growth expectation

Hou expects TSMC’s first-year output of 2nm wafers to be 45 per cent higher than the first-year volume produced with its 3nm technology in 2023. That comparison concerns wafers produced in each technology’s first year, while the approximately 120,000-wafer figure is a projection of monthly 2nm capacity at the end of 2026.

TSMC’s work on the technology also extends to chip design tools. AI Affairs previously reported that Synopsys and TSMC had expanded their collaboration on A14 EDA flows, agentic AI and 2nm intellectual property. That collaboration concerns the design side of the process family, alongside TSMC’s manufacturing expansion.

TSMC expects its 2nm manufacturing capacity to grow at a compound annual rate of about 70 per cent between 2026 and 2028.