Chip manufacturing giant TSMC is rapidly increasing its 2 nm production capacity to meet the intense demand in artificial intelligence chips and high-performance computing. The company is carrying out the fastest expansion process in its history with 5 new facilities to be commissioned this year.

Speaking at the TSMC 2026 Technology Symposium, Hou Yung-ching stated that expansion plans are progressing at twice the speed. Stating that the 2 nm production process has started mass production, the official emphasized that the new nanosheet architecture offers better efficiency than the 3 nm generation.

Growth rate is doubling

Despite the increased capacity, supply shortages in high-performance chips are expected to continue. Technology giants such as NVIDIA, Apple, Qualcomm and AMD have already secured most of the 2 nm production capacity.

Apple has reportedly received more than half of its initial capacity. Hou Yung-ching stated that it was a first in the industry for more than one factory to put new production processes into operation in the same year.

With the commissioning of five 2 nm factories, production capacity is expected to increase by approximately 45% compared to the 3 nm period. TSMC plans to build 9 new factories or expand existing facilities every year, doubling its growth rate compared to the past.

The production increase continues simultaneously in global facilities such as Arizona, Kumamoto and Dresden. Wafer shipments for AI accelerators increased 11x, thanks to strong demand.

Major investment in advanced packaging technologies

The demand for large-sized chips using advanced packaging technologies has increased 6 times. Advances in 3D packaging technologies have reduced the mass production time of SoIC chips by up to 75%.

The company aims to grow its advanced packaging capacity by 80% in 2027. TSMC continues to expand its capacity at an unprecedented pace to meet the massive demand for high-performance manufacturing processes.

These large-scale investments aim to strengthen the company’s leading position and dominance in the semiconductor industry.

Do you think TSMC’s aggressive production strategy will be enough to solve the chip crisis?