TSMC’s 2nm process is expected to be the next “revenue driver” for the Taiwanese giant, potentially bringing in billions of dollars in revenue. The Taiwanese giant appears to be preparing for the next round of semiconductor manufacturing processes, namely the 2-nanometer (N2) process. The 2-nanometer node is expected to be the company's most expensive technology yet, and despite industry skepticism about the process, TSMC is stepping up efforts to achieve mass production capacity to meet expected demand.
According to estimates from Electronic Times, TSMC plans to produce 200,000 2nm process wafers per month by 2028, surpassing the level of the 3nm node.
The 2-nanometer process is expected to be put into mass production in the second half of 2025, with initial production capacity expected to reach 40,000 units. More importantly, demand for the 2-nanometer process is expected to be more diversified this time, most of which will be used in the field of artificial intelligence to meet orders from companies such as NVIDIA and AMD.
TSMC expects demand for 2nm to be higher than 3nm, which means production is expected to reach record highs as TSMC becomes one of the few companies in the industry that can offer competitive solutions.
Interestingly, TSMC's 2nm process node is expected to be one of the most expensive process nodes for customers' products, meaning there is hesitancy among customers to adopt the process. NVIDIA is likely to use the 3nm process in its existing Blackwell Ultra AI product line, while AMD's Instinct MI350 AI accelerator product line will also use the 3nm process. We are expected to see the debut of the 2nm process in the Rubin and Instinct MI400 series, but this will undoubtedly come with a higher cost. In addition, ASIC developers, especially companies such as xAI, Google and Meta, will also bring huge demand.
TSMC has had great success riding on the AI hype, and given that demand is indeed growing, it is expected to continue at this pace. Despite some slack in solutions from rivals such as Intel and Samsung, TSMC has maintained its lead, grabbing the majority of the semiconductor market share.