TSMC is accelerating 2nm process expansion across five Taiwanese fabs to meet robust AI demand. The Baoshan facility reportedly reached a monthly capacity of 20,000 wafers in May 2026.
TSMC aims to increase initial 2nm output by 45% compared to the first year of 3nm production. The company projects a 70% compound annual growth rate for 2nm capacity between 2026 and 2028. Mass production for the enhanced N2P process is scheduled for the second half of 2026.
This expansion responds to rising competition from Samsung, which recently secured an AI chip deal with Broadcom. TSMC raised its 2026 capital expenditure forecast to a range of $60 billion to $64 billion. The company will allocate a significant portion of these funds to advanced process technologies.