Semiconductors can be found in almost every electronic gadget out there. This includes our smartphones, tablets, smartwatches, headphones, speakers, cars, and more. This means that there’s a huge demand for them, and it looks like TSMC is scaling up to meet demand. According to a report from the Commercial Times, it looks like TSMC plans to double its 2nm production by setting up five fabs to enter the ramp-up phase.
TSMC to double 2nm chip production
According to the report, TSMC is preparing itself to meet explosive demand for AI and compute. As a result, TSMC has set up five wafer fabs to enter the ramp-up phase, which will basically double its 2nm production capabilities. With these new facilities, the output capacity is expected to be 45% higher than TSMC’s 3nm fabs.
But that’s not all. It seems that TSMC also plans to upgrade and install nine new factories with capacity conversion projects in 2027. TSMC’s plan is pretty smart. Right now, they are one of a handful of companies that produce chipsets. However, TSMC can only produce so many chips at once.
If they fail to keep up with demand, customers might turn to its competitors, like Samsung, for example. So by launching five new fabs, TSMC is ensuring that they can produce enough to satisfy their customers.
Is 2nm the end-all?
That being said, being able to produce more 2nm chips doesn’t mean TSMC will snag more customers. While chips made on the 2nm process are the latest and will be in demand for higher-end products, not everyone needs them. For more powerful devices like phones, tablets, or computers, sure.
But for less powerful devices, like headphones or smart displays, do you really need to outfit it with a 2nm chipset when a 4nm or 6nm chipset will get the job done? That might actually be the play by Samsung, whose 4nm chips have recently hit 80% yield. This would allow Samsung to cater to companies who don’t want to pay TSMC’s prices or don’t have a need for 2nm chips.
However, for those keeping up with tech, we can probably look forward to seeing more 2nm chips this year. Apple is expected to use it in its latest iPhones. Qualcomm’s next-gen flagship will also use it, and MediaTek too.
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