TSMC’s Kaohsiung 2nm wafer fab will hold an expansion ceremony at the end of March and start accepting orders in April, according to The Central News Agency. Apple, the first customer for the new process, plans to use the 2nm-based A20 chip in its iPhone 18 series, which is expected to launch next year.
Why it matters: TSMC’s 2nm process (N2) is one of the most advanced semiconductor nodes globally. Compared to the current 3nm (N3) process, the 2nm node adopts gate-all-around (GAA) transistor technology, enhancing performance, power efficiency, and transistor density.
Details: The 2nm process is TSMC’s first manufacturing process to use the Nanosheet structure, a type of GAA transistor architecture.
- TSMC’s 2nm process has achieved a trial production yield of over 60% and is expected to enter mass production soon, Chinese media outlet Icsmart reported. With the full operation of TSMC’s Baoshan and Kaohsiung fabs, the company’s monthly 2nm wafer production capacity will reach 50,000 units by the end of 2025, the report said.
- Taiwanese media outlet Economic Daily News suggested that the A20 chip in next year’s iPhone 18 series will be built on TSMC’s 2nm process, delivering a 15% performance boost over 3nm. Apple’s A19 chip for the iPhone 17 series this year is expected to use TSMC’s 3nm process.
- AMD, Intel, Broadcom, and AWS are also likely to consider TSMC’s 2nm manufacturing capacity, according to industry analysis.
Context: The global semiconductor market is forecasted to grow steadily in 2025 after a recovery in 2024, driven by sustained AI demand and a gradual rebound in non-AI sectors, market intelligence firm IDC stated in a report released yesterday. As the cornerstone of semiconductor manufacturing, the foundry market is expected to grow by 18% in 2025.
- TSMC, due to its strengths in advanced nodes below 5nm and CoWoS packaging technology, is seeing strong orders for AI accelerators, and its market share is projected to rise to 37% in 2025.
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