TSMC to start mass production of cutting-edge 2nm process products from next year

Taiwan's TSMC, the world's largest foundry company, will start mass production of cutting-edge 2nm (nanometer, one-billionth of a meter) process products from next year, Taiwanese media, including Free Times, reported on the 6th, citing sources.

According to sources, TSMC recently made the decision as the test production yield (收率 and normal product ratio) of 2-nano process products exceeded 60%.

TSMC plans to move its 2-nano technology, which is being tested and produced at the northern Shinju Science Complex, to the Kaohsiung plant next year due to better-than-expected yields.

TSMC's 2Nano 1 and 2 plants, which are being built at the Nanz Science Park in Kaohsiung, are expected to start operation in the first and third quarters of next year, respectively.

The Free Times reported that Weijerja, chairman of TSMC, said he "didn't even dream" of the hot demand for 2 nanos and said he was actively preparing production facilities to satisfy the demand of customers. Nano is a unit that refers to the line width of a semiconductor circuit, and the narrower the line width, the lower the power consumption and faster the processing speed. Currently, the world's most advanced mass production technology is 3 nanometers.

TSMC is generally dominant in the 2 nano sector, experts say.

Taiwanese media reported that TSMC's capital expenditure (equipment investment) is expected to reach up to $38 billion (about 53.9 trillion won) next year.

He then explained that the amount exceeds $36.29 billion (about 51.4 trillion won) in 2022, the largest facility investment ever.

TSMC plans to build 10 new factories in Taiwan and abroad at the same time next year, he added, adding that such facility investments will be disclosed at the fourth quarter earnings briefing this year.