As TSMC prepares to begin 4nm mass production at its Arizona fab, its plans to produce 2nm chips in Taiwan are progressing steadily. Taiwanese media outlet Economic Daily News reported that TSMC has completed limited risk production of around 5,000 wafers using its 2nm process at the Baoshan fab in Hsinchu Science Park.
Why it matters: TSMC’s 2nm process represents a further leap in semiconductor technology, crucial for powering next-generation devices with greater efficiency and higher performance.
Details: The 2nm process has shown promising results and is on track for scheduled mass production in 2025, the Economic Daily News report stated.
- TSMC has planned to roll out its 2nm production at the Baoshan and Kaohsiung fabs. During a recent earnings call, TSMC Chairman C. C. Wei said, while high-performance computing (HPC) is driving the shift toward chiplet designs, it will not affect 2nm adoption. Growing customer interest in 2nm has led to higher demand, surpassing that of 3nm, which is expected to result in greater production capacity for 2nm, he claimed.
- TSMC has introduced the N2P process technology as an extension of its 2nm family, designed to support applications in smartphones and high-performance computing (HPC). Mass production will begin in the second half of 2026, the same report said.
- The N2 (2nm) process can reduce power consumption by 24% to 35% at the same voltage or improve performance by 15%, while transistor density is 1.15 times higher than the 3nm generation, according to the Chinese media outlet Icsmart. These advancements are primarily achieved through TSMC’s new GAA (Gate-All-Around) nanosheet transistors and N2 NanoFlex design.
Context: Citigroup analysts are optimistic that NVIDIA’s drive in AI-related revenue growth could enable the US chip giant to surpass Apple as TSMC’s largest customer by the end of 2025. Apple currently accounts for around 25.2% of TSMC’s revenue, while NVIDIA’s share is approximately 10.1%, according to supply chain sources.
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