TSMC’s 2nm Process Set for Rapid Growth

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TSMC’s N2 processes are expected to receive substantial demand from the industry, even surpassing that of the 3nm process. Customers reportedly find TSMC’s 2nm a ‘cost-efficient’ product.

TSMC’s 2nm Process Is More Attractive Relative to 3nm, Driven by Node Advancements

According to reports, TSMC plans for its 2nm wafer output to reach up to 100,000 units by 2026. The cost structure is reportedly more attractive compared to the 3nm process, and demand is expected to be much higher as a result.

Initially, the adoption of TSMC’s N2 lineup will primarily dominate the mobile segment. Apple is rumored to build four different chipsets on this process node, while both MediaTek and Qualcomm are anticipated to be early adopters. Following them, HPC-focused firms such as NVIDIA and AMD will contribute significantly to TSMC’s 2nm revenue.

Interestingly, the 2nm node is attracting far higher interest compared to 3nm due to it being the first process where TSMC adopts a nanosheet transistor structure.

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The GAA (Gate-All-Around) transistor structure allows TSMC to feature a similar number of EUV layers as the 3nm process, which means the generational bump in pricing will be lower than expected. For firms like NVIDIA, the primary concern with employing TSMC’s cutting-edge processes is the associated cost. However, N2 and its derivatives are expected to offer significant cost advantages.

TSMC has high expectations for 2nm demand, leading to an aggressive production ramp-up schedule. The mass production of TSMC’s 2nm process is currently scheduled for H2 2026, with tech giants’ adoption potentially starting in early 2027, depending on the outcome of High Volume Manufacturing (HVM).