TSMC sees 70% annual growth in 2nm capacity through 2028

Taipei, April 28 (CNA) Taiwan Semiconductor Manufacturing Co. (TSMC), the world's largest contract chipmaker, expects its 2-nanometer (2nm) chip capacity to grow at a compound annual rate of 70 percent from 2026 to 2028.

The projection comes as five fabs begin volume production of 2nm chips this year - two in Hsinchu and three in Kaohsiung - TSMC Senior Vice President and Deputy Co-COO Cliff Hou (侯永清) said at the company's 2026 Technology Symposium in Silicon Valley last week.

Hou said output in the first year of 2nm production, which began in the fourth quarter of 2025, is expected to be 45 percent higher than that of 3nm chips in their first year in 2023.

TSMC will also continue expanding its 3nm capacity, with annual growth of about 25 percent expected between 2022 and 2027, he added.

The company is also ramping up advanced packaging capacity. CoWoS capacity is expected to grow by more than 80 percent annually from 2022 to 2027, while SoIC capacity is projected to increase by more than 90 percent per year.

Overseas, TSMC's first fab in Arizona is expected to raise output by 80 percent in 2026 compared with 2025, while its first fab in Kumamoto, Japan, is projected to increase output by 130 percent year-on-year, Hou said.