TSMC’s 2nm Capacity Fully Booked Through 2026 as Production Output Targets 100,000 Monthly Wafers by Next Year
As 2025 nears its end, Taiwan Semiconductor Manufacturing Company (TSMC) is preparing to begin mass production of 2nm process technology, marking a major advancement in chip performance and energy efficiency. Reports indicate that both of TSMC’s 2nm production facilities in Hsinchu and Kaohsiung are already fully booked for 2026, as global demand for cutting-edge chips continues to surge. The company plans to reach a monthly production target of 100,000 wafers by mid-2026.
Pilot production for 2nm wafers is currently underway, with full-scale production expected to begin by the end of 2025. According to Dan Nystedt, both plants are still in the pilot manufacturing phase with yields around 70 percent. This figure is similar to the yield achieved during the initial trial production run last year, which raises questions about the pace of improvement as TSMC moves toward volume manufacturing.
TSMC is in the pilot production and validation phase of its 2nm process in two Taiwan locations, Fab 20 in Hsinchu (BaoShan) and Fab 22 in Kaohsiung, media report, with the yield rate nearly at 70%. Mass production is expected by year-end, with output increasing by mid-2026.…
— Dan Nystedt (@dnystedt) October 13, 2025
Industry analyst Ming-Chi Kuo previously predicted that TSMC’s 2nm yield rates would improve beyond those achieved during the trial phase, but the latest data shows that yields remain steady at approximately 70 percent.
According to United Daily News, TSMC’s advanced packaging capacity is also operating near full utilization. Output is expected to reach 150,000 wafers per month next year, and Nystedt noted that these services are fully booked through 2026. Advanced packaging will play a critical role in powering next-generation AI and high-performance computing products.
The Hsinchu and Kaohsiung plants are TSMC’s first facilities dedicated to 2nm production and will use Gate-All-Around (GAA) transistor technology, a major architectural shift from the FinFET structure used in earlier nodes. This transition is expected to significantly boost performance-per-watt efficiency, allowing manufacturers to build more powerful and energy-efficient chips for AI, smartphones, and data centers.
With major clients such as Apple, NVIDIA, AMD, and MediaTek already lined up, TSMC’s 2nm process is shaping up to be one of the most in-demand semiconductor technologies ever produced. The full booking of its 2026 production schedule highlights just how strong the global race for advanced chips has become.
What do you think about TSMC’s 2nm progress? Will its yield rates improve quickly enough to meet the growing demand, or could production limits slow down next-generation chip launches?
