TSMC accelerates expansion: 3nm expected to increase by 20% to 180,000 wafers/month, 2nm to reach 100,000 wafers by year-end.

TSMC's stock-price surge has propelled its market value to the forefront globally, driven by the market's strong expectations for continued expansion of its advanced process capacity.

According to a Wccftech report on Monday, supply chain sources indicate TSMC's monthly 3nm capacity is expected to rise from 150,000 wafers to 180,000 wafers, an increase of about 20%; while 2nm capacity could reach 100,000 wafers/month by the end of 2026. Amid explosive growth in demand for AI computing power, the world's largest wafer foundry is racing to expand production—but the supply gap is projected to continue through 2027.

TSMC's share price rose 3% to a record high on Monday. This round of gains reflects the market's heightened focus on TSMC's advanced process supply-and-demand situation—major AI companies are ramping up investment in computing power, resulting in tight supply for TSMC's 2nm and 3nm production lines.

TSMC CEO C.C. Wei stated in the latest earnings call that the company is investing heavily to accelerate expansion of existing wafer fabs and build new capacity to meet rising demand. He also admitted, due to ongoing renewals of wafer orders from major clients such as Nvidia, AMD, and Apple, supply shortages will extend through 2027.

3nm Capacity Expands Beyond Expectations, Monthly Target Raised to 180,000 Wafers

According to supply chain insiders, TSMC's 3nm wafer plant in Taiwan originally targeted a capacity of 150,000 wafers/month by the end of 2026, but has now raised it to 180,000 wafers/month—about 20% higher than the original plan.

This adjustment directly responds to faster-than-expected market demand growth. AI companies have recently announced large-scale plans to expand computing power, involving projects spanning many years, with demand for advanced process chips covering current and future cycles. As one of the most cutting-edge mass-production technologies, the 3nm process is a core foundation for high-end AI chips and consumer processors from key clients like Nvidia and Apple.

TSMC's current 3nm monthly capacity is about 150,000 wafers. This expansion plan means a net increase of 30,000 wafers/month, a considerable boost.

2nm Mass Production Scaling Up, Year-End Target Set at 100,000 Wafers/Month

TSMC’s 2nm process will enter mass production by the end of 2025 and is currently in a rapid capacity ramp-up phase. According to supply chain sources, monthly capacity is expected to approach 100,000 wafers by the end of 2026.

All orders from TSMC's two 2nm wafer fabs have been fully booked, resulting in extremely tight supply. The 2nm process is at the forefront of current semiconductor technology and is considered a key manufacturing foundation for the next generation of AI accelerator chips and high-end mobile processors.

C.C. Wei emphasized in the earnings call that the company is simultaneously advancing both expansion of existing production lines and construction of new capacity to ensure supply keeps pace with demand.

Supply Gap Continues, Competitive Landscape Shifts

Despite TSMC's full-scale expansion, tight supply is unlikely to be fundamentally alleviated in the short term. C.C. Wei has clearly stated that shortages of advanced process capacity will persist until 2027, meaning major clients such as Nvidia, AMD, and Apple will face capacity constraints for quite some time.

Meanwhile, TSMC's continued tight capacity also creates potential opportunities for other wafer foundries. According to Wccftech, Intel's foundry business has garnered significant attention from some major customers. Intel remains an important partner for TSMC, but its own foundry business is expected to ramp up over the next few years and has hinted at a heavyweight client list to be announced in succession.

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