TSMC plans major 2nm and 3nm capacity ramp by mid-2027

TSMC Taiwan Semiconductor Manufacturing Company Limited ↗ 6.33% is preparing its most aggressive advanced-node capacity buildout yet, with plans to raise monthly 2-nanometer wafer output by roughly 22 percent and 3-nanometer output by more than 16 percent by mid-2027, according to reports from Taiwanese media citing supply chain sources.

Expansion Targets

The world's largest contract chipmaker recently shared its 2027 expansion targets across the semiconductor supply chain for the first time, according to TrendForce, citing Taiwan's Economic Daily News. TSMC's monthly 2nm capacity is expected to climb from 90,000 wafers at the end of 2026 to 110,000 by mid-2027, while 3nm output is set to rise from more than 180,000 wafers per month to 210,000 over the same period.biz.chosun+1

To achieve those goals, TSMC is building new 3nm production lines at facilities in Taiwan, Arizona, and Japan. In Taiwan's Tainan Science Park, new 3nm lines are set to begin mass production in the first half of 2027, while its second Arizona fab is slated for commercial 3nm production in the second half of 2027. The company is also converting some existing 5nm equipment to support 3nm output.semiwiki+1

AI-Driven Investment

The expansion is underpinned by what TSMC has described as strong demand visibility through 2029–2030, based on orders from major customers and cloud service providers. In July, the company raised its 2026 capital expenditure outlook from an initial range of $52 billion–$56 billion to $60 billion–$64 billion, with 70 to 80 percent earmarked for advanced processes. TSMC posted record second-quarter revenue of $40.2 billion, driven by a 45 percent year-over-year increase in sales.finance.yahoo+2

Nvidia ↗ 2.78%, Apple ↘ 0.52%, AMD Advanced Micro Devices, Inc. ↗ 11.04%, and Broadcom ↗ 0.74% are among the customers competing for leading-edge capacity. TSMC is also expanding its CoWoS advanced packaging to serve AI chip clients at its Zhubei Plant 7.biz.chosun+1

Next-Generation Roadmap

Beyond current nodes, TSMC is accelerating development of sub-2nm technologies. The company has outlined A14 (1.4nm), A13 (1.3nm), and A12 (1.2nm) processes, with A13 and A12 planned for production in 2029. Mass production of the A14 node has been pulled forward to mid-2028, ahead of the original schedule. Taiwan media reported that TSMC is working with ASML ↗ 5.02% to introduce 12-inch photomasks as part of these efforts.tomshardware+2

TSMC declined to comment directly on the reports, stating that capacity information should be based on officially released materials.biz.chosun