TSMC to hit 3nm production target months ahead of schedule

TSMC Taiwan Semiconductor Manufacturing Company Limited ↘ 1.20% is on track to reach 180,000 monthly wafer starts on its 3nm process by early in the fourth quarter of 2026, two to three months ahead of market expectations, as strong demand from AI and data center customers accelerates the chipmaker's expansion plans.

Demand From AI Giants Drives Acceleration

The faster-than-expected ramp, first reported by Taiwan's Economic Daily News, is being driven by orders from NVIDIA ↘ 1.47%, AMD Advanced Micro Devices, Inc. ↘ 1.47%, and Broadcom ↘ 2.62%, according to a TrendForce report published on Monday. TSMC's 3nm monthly wafer starts had already climbed to nearly 150,000 in the first half of 2026, up from approximately 120,000 to 130,000 at the end of 2025.trendforce+1

Simultaneously, TSMC's newer 2nm process is ramping aggressively. Monthly wafer starts reached approximately 50,000 to 60,000 in the first half of the year and could exceed 80,000 by early in the fourth quarter, with the company targeting close to 100,000 monthly wafers by year-end. Combined output across the two most advanced nodes could surpass 260,000 wafers per month by early Q4.wccftech+1

Expansion Footprint Grows

To meet demand, TSMC has announced three additional 3nm fabs in Taiwan, Arizona, and Japan, while also converting some 5nm equipment to support 3nm production. On the 2nm front, the company plans to ramp five fabs — two in Hsinchu and three in Kaohsiung — during 2026, targeting first-year output 45 percent higher than its 3nm node achieved in its debut year of 2023. TSMC has projected 2nm capacity will grow at a compound annual rate of 70 percent from 2026 to 2028.trendforce

Next-Generation Nodes on the Horizon

Looking further ahead, construction of TSMC's 1.4nm fab at Central Taiwan Science Park is running ahead of schedule, with the first building expected to be completed before April 2027. Supply chain sources indicate pilot production could begin as early as the start of the third quarter of 2027, with mass production anticipated in the second half of 2028.trendforce

Apple ↘ 0.80% is expected to be a major 2nm customer through its A20 Pro chip for the iPhone 18 Pro lineup launching in September, followed by Qualcomm ↘ 0.52% and MediaTek for 2027 flagship mobile chips. On the data center side, AMD's MI455X GPUs are among the products expected to drive sustained 2nm demand.wccftech