TSMC Set for April Start on 2nm GAA Mass Production

In recent developments, TSMC has confirmed its commitment to implementing the advanced Gate-All-Around (GAA) technology for the production of the highly anticipated 2nm process node. The initiation of equipment installation at the Poshan P1 wafer fabrication facility, located in the Hsinchu Science Park, is scheduled to commence in April. Subsequently, production of 2nm process chips utilizing GAA technology is projected to commence at the P2 and Kaohsiung facilities in 2025.

The ongoing construction of the new wafer fabrication plants in Poshan and Kaohsiung is progressing seamlessly, driven by the successful advancements in TSMC's 2nm process technology. Notably, the Taichung Science Park has strategically outlined preliminary plans for A14 and A10 production lines, with the decision to incorporate the 2nm process technology contingent upon market demand.

In relation to the second phase of the Taichung wafer fabrication project, TSMC is actively evaluating customer demands. A definitive decision regarding whether the facility will adopt the 2nm or A14 process node is expected in 2027. The successful evolution of TSMC's 2nm technology presents compelling business opportunities for key players such as ASML, Applied Materials, and various Taiwanese suppliers.

As of the third quarter in 2023, TSMC's revenue share from the 3nm process node stands at approximately 6%. The monthly production capacity for 3nm has progressively increased to an impressive 100,000 wafers, with expectations of a higher contribution to revenue in 2024. Within the 3nm node, the N3E, exhibiting superior performance compared to N3B, commenced mass production in the fourth quarter of 2023. Additionally, the N3P and N3X processes are poised to cater to diverse customer requirements.

Anticipated to enter mass production in 2025, TSMC's 2nm technology has garnered significant interest from various sectors, notably in the realms of High-Performance Computing (HPC) and smartphones. Intel has notably secured ASML's first High-NA EUV lithography machine, each valued at approximately 400 million euros. While specific procurement plans for such equipment have not been disclosed by TSMC, the latest lithography machines are deemed essential for realizing the 2nm process technology.