TSMC 2nm Defect Rate Hits Record Low, Q4 Production On Track

Recently, TSMC released new data highlighting the defect density (D0) of its upcoming N2 (2nm) process technology compared to previous nodes at the same stage of development. According to the company, the N2 node demonstrates a lower defect density than its N3 (3nm), N5 (5nm), and N7 (7nm) manufacturing nodes. TSMC's latest roadmap indicates that N2 is two quarters away from volume production, positioning the company to begin manufacturing 2nm chips by the end of the fourth quarter of 2025 as planned.

The N2 process marks TSMC's first implementation of gate-all-around (GAA) nanosheet transistors, representing a major architectural shift from the FinFET designs used in earlier nodes like N3/N3P, N5/N4, and N7/N6. Despite this transition, the defect density of N2 is tracking lower than previous technologies at a comparable point before mass production, showcasing significant early maturity and stability.

The defect density trend chart spans from three quarters before mass production to six quarters after. Across all observed nodes—N7/N6 (green), N5/N4 (purple), N3/N3P (red), and N2 (blue)—defect densities consistently decrease as production ramps up, though the rate of improvement varies depending on node complexity. Notably, N5/N4 achieved the fastest early defect reductions, while N7/N6 improvements were more gradual. Although N2 initially exhibited a higher defect rate compared to N5/N4, it has since shown a sharp decline, closely mirroring the improvement trajectory of N3/N3P.

TSMC emphasized that production volume and product diversity remain key drivers for accelerating defect density improvements. A broader manufacturing scale and the development of a wide range of products on the same node allow faster identification and resolution of defect and yield issues. The company noted that the N2 technology has already seen an increase in new tape-outs, particularly for smartphones and high-performance computing (HPC) applications, supporting a faster learning curve. The sharp drop in defect density underscores TSMC's ability to optimize manufacturing processes ahead of schedule.