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TSMC is set for significant adoption of its 2nm process, as the company plans to scale up production to substantial levels. This technology is expected to be the next major revenue driver for TSMC, potentially bringing in billions.
TSMC’s 2nm Process Expected to Be the Next “Revenue Driver” for the Taiwan Giant, Potentially Bringing in Billions
The Taiwanese semiconductor giant is preparing for its next cycle of semiconductor process technology, which will be the 2nm (N2) node. The 2nm technology is expected to be TSMC’s most expensive to date, but despite industry skepticism about adopting it, TSMC plans to produce 200,000 wafers per month by 2028, surpassing the production levels of its 3nm process.
2nm is expected to enter mass production by the second half of 2025 with an initial capacity of 40,000 units. This time, demand for 2nm is anticipated to be more diverse, primarily driven by AI applications, fulfilling orders from companies like NVIDIA and AMD. TSMC predicts that the demand for 2nm will surpass that of 3nm, leading to production figures reaching an all-time high since TSMC will be one of the few firms capable of offering a competitive solution.
TSMC’s 2nm node is expected to be one of the most expensive for clients to integrate into their products, leading to hesitance in adoption. NVIDIA will likely stick with its current Blackwell Ultra AI lineup using 3nm, while AMD will use 3nm for its Instinct MI350 AI accelerator series. The debut of 2nm is expected with Rubin and the Instinct MI400 series but at higher costs. A significant portion of demand is also set to come from ASIC developers, especially firms like xAI, Google, and Meta.
TSMC has experienced tremendous success with the AI hype and is expected to maintain this momentum given rising demand. With competitors like Intel and Samsung lagging in their solutions, TSMC continues to dominate, capturing most of the semiconductor market share.
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According to the passage, what is expected to be the next major revenue driver for TSMC?
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