TSMC 2nm Surge: Kaohsiung Plant Speeds Up, Orders to 2027

TSMC is making significant strides in its 2nm process technology, with reports indicating that mass production timelines for its Hsinchu Baoshan plant and Kaohsiung plant are being accelerated. Originally, the Baoshan facility was scheduled to commence production in the second half of this year, with the Kaohsiung plant following in 2026. However, TSMC is now reportedly advancing plans to achieve simultaneous 2nm mass production at both sites within 2025, which could substantially boost the company's revenue performance.

The company's previous monthly revenue record was set in October 2024 at NT$314.2 billion. However, revenue subsequently decreased to a range between NT$260 billion and NT$293.2 billion. TSMC's highest quarterly revenue and profit were achieved in Q4 2024, reaching NT$868.46 billion with an earnings per share (EPS) of NT$14.45. Achieving a quarterly revenue surpassing NT$1 trillion this year would require average monthly revenue of at least NT$333.3 billion—approximately a 20% increase from current levels. Profit margins could also see a boost of over 30%, demonstrating the company's robust growth potential.

Regarding the accelerated 2nm mass production, TSMC reiterated that its 2nm process technology is progressing smoothly and is on track for mass production in the second half of 2025. The latest technical developments will be disclosed during the January earnings call.

Industry insiders report that TSMC's Kaohsiung 2nm facility is advancing rapidly, aligning closely with the progress of the Baoshan 2nm trial production. Early trial yields at Baoshan have already surpassed the initial 3nm production benchmarks, which is expected to streamline the transition to full-scale mass production. It is anticipated that both the Baoshan and Kaohsiung plants will begin 2nm production concurrently later this year.

While the Kaohsiung plant was initially planned to start 2nm production in 2026, advancing this schedule to 2025 aligns with TSMC's broader strategy of simultaneous production across its northern and southern facilities.

To commemorate the expansion, TSMC will hold a 2nm plant expansion ceremony in Kaohsiung on March 31, attended by key officials including Kaohsiung Mayor Chen Chi-mai and Premier Cho Jung-tai.

Reports indicate that TSMC has already established order allocations for its 2nm production capacity. The first batch of production at the Baoshan facility is expected to be fully allocated to Apple. Meanwhile, the Kaohsiung plant will support other clients. Additionally, Intel is reportedly competing for 2nm wafer production slots for this year, with client demand already lined up until 2027—underscoring the strong market demand even before mass production begins.

TSMC's 2nm manufacturing facilities are primarily located at the Hsinchu Baoshan and Kaohsiung sites. The Baoshan site is expected to undergo a four-phase expansion, while the Kaohsiung facility could expand through more than five phases. Reports also suggest that the Southern Taiwan Science Park may undergo dynamic line upgrades to accommodate 2nm and even A16 process nodes to meet growing client demand.