TSMC is doubling down on Taiwan for its most advanced chip technology, with 2-nanometer production set to begin simultaneously at its Hsinchu and Kaohsiung facilities in the second half of this year.
The world’s largest contract chipmaker will celebrate its 2nm expansion with a ceremony at its Kaohsiung plant on March 31, while the first chip samples have already emerged from its Hsinchu facility. Industry analysts say early yields have reached 60%, with monthly capacity projected to hit 50,000 wafers by year-end.
TSMC’s 2nm technology marks a significant architectural shift from the current FinFET design to Gate-All-Around Field Effect Transistor (GAAFET), which allows for greater transistor density and improved power efficiency.
Customer interest has exceeded the company’s 3nm launch, according to Chairman Mark Liu. Apple is expected to be the first major adopter for its iPhone 18 Pro models in late 2026, while AMD and Intel will likely incorporate the technology into high-end CPUs.
The advanced process comes with steep costs, with each 2nm wafer estimated at $30,000. This price pressure, combined with potential tariffs and manufacturing expenses if production shifts to U.S. facilities, may ultimately be passed on to consumers.
TSMC’s board has yet to approve additional U.S. investments as the chipmaker balances Taiwan production with political pressures from the Trump administration.
