TSMC’s Real Bottleneck
TSMC 2nm is ready, but advanced packaging CoWoS capacity is the real AI chip bottleneck
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Relevant reports indicate that TSMC has announced that its 2nm technology is on schedule to begin volume production in the fourth quarter of 2025. The N2 technology employs first-generation nanosheet transistor technology, delivering full-node improvements in performance and power consumption across the process. It also develops low-resistance redistribution layers and super high-performance metal-insulator-metal capacitors to continue enhancing the performance of the 2nm process technology.
TSMC states that the N2 technology will become the industry’s most advanced semiconductor technology in terms of density and energy efficiency. The N2 technology adopts a leading nanosheet transistor structure, providing full-node improvements in performance and power consumption to meet the growing demand for energy-efficient computing. The N2 and its derivative technologies will further expand TSMC’s technological leadership advantage through the company’s ongoing enhancement strategy.
Compared to the 3nm N3E process, at the same power consumption, TSMC’s 2nm offers a 10% to 15% speed increase; at the same speed, power consumption is reduced by 25% to 30%, while chip density increases by more than 15%. TSMC will also launch the N2P process technology as an extension of the 2nm family, planned for volume production in the second half of 2026, supporting smartphone and high-performance computing applications.
TSMC’s 2nm production is simultaneously underway at its Kaohsiung and Hsinchu fabs, with the Kaohsiung fab being the top priority for 2nm production. TSMC plans to build 5 2nm wafer fabs in Kaohsiung, with a total investment exceeding 1.5 trillion New Taiwan Dollars. The Phase 1 fab began volume production by the end of 2025, and the Phase 2 fab is expected to start volume production in the second quarter of 2026, creating 7,000 high-tech jobs and driving industrial transformation and upgrading in Kaohsiung.
Reports also point out that, benefiting from the explosive growth in AI demand, the 2nm process will see significant expansion this year. New reports from the semiconductor industry indicate that the maximum monthly capacity for 2nm volume production this year will reach up to 140,000 wafers, exceeding market estimates of 100,000 wafers. Achieving massive volume production within one year of starting advanced process mass production, it is approaching the 3nm process’s expansion to 160,000 wafers this year, demonstrating strong demand. The 3nm process, having been in volume production for over three years, is also currently in a state of tight supply.
