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TSMC Sees 70% Annual Growth in 2nm Chip Capacity Through 2028

TSMC projects 70% compound annual growth in 2nm chip capacity from 2026 to 2028, with five fabrication plants beginning volume production this year. Senior Vice President Cliff Hou announced the plans at the 2026 Technology Symposium in Silicon Valley. The company also detailed expansion of 3nm capacity and advanced packaging including CoWoS and SoIC. TSMC unveiled its next-generation A13 process targeting volume production in 2029 for AI and high-performance computing.

Key Points: TSMC 2nm Chip Capacity to Grow 70% Annually Through 2028

  • TSMC expects 70% annual 2nm capacity growth from 2026-2028
  • Five fabs start 2nm production in Hsinchu and Kaohsiung
  • 2nm first-year output 45% higher than 3nm
  • CoWoS capacity growing over 80% annually through 2027
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TSMC projects 70% annual growth in 2nm capacity through 2028

TSMC projects 70% annual growth in 2nm capacity from 2026-2028, with five fabs starting production. CoWoS and SoIC packaging also expanding rapidly.

"Customers expect advanced nodes like the A13 to be ready for volume production when next-generation designs require them - C.C. Wei"

Taipei, April 28

Taiwan Semiconductor Manufacturing Co. expects its 2-nanometer chip capacity to grow at a compound annual rate of 70 per cent from 2026 to 2028. The world's largest contract chipmaker projects this growth as five fabrication plants begin volume production of 2nm chips this year. These facilities include two plants in Hsinchu and three in Kaohsiung.

TSMC Senior Vice President and Deputy Co-COO Cliff Hou shares these details at the company's 2026 Technology Symposium in Silicon Valley, according to a report by Focus Taiwan, which highlights the company's manufacturing trajectory for the coming years.

The report stated that Hou highlighted the output in the first year of 2nm production, which began in the fourth quarter of 2025, is expected to be 45 per cent higher than that of 3nm chips in their first year in 2023.

The report mentioned that Hou said that TSMC will also continue expanding its 3nm capacity, with annual growth of about 25 per cent expected between 2022 and 2027.

"The company is also ramping up advanced packaging capacity. CoWoS capacity is expected to grow by more than 80 percent annually from 2022 to 2027, while SoIC capacity is projected to increase by more than 90 percent per year," the report said.

Overseas, TSMC's first fab in Arizona is expected to raise output by 80 per cent in 2026 compared with 2025, while its first fab in Kumamoto, Japan, is projected to increase output by 130 per cent year-on-year, Hou said.

Earlier, TSMC unveiled its next-generation A13 process at its North America Technology Symposium in California on Wednesday.

The world's largest contract chipmaker stated that it was targeting volume production for the new technology in 2029. The announcement came during the company's largest annual customer forum, which was held in Santa Clara under the theme "Expanding AI with Leadership Silicon."

According to a separate report by Focus Taiwan, the new A13 process was aimed at meeting the growing demand for artificial intelligence, high-performance computing, and mobile applications. The company used the symposium to showcase its latest services and technological advancements designed to support the next generation of semiconductor design.

The report mentioned that in a statement, TSMC Chairman and CEO, C.C. Wei, said that customers expect advanced nodes like the A13 to be ready for volume production when next-generation designs require them, adding the company continues to lead in chip density, performance and power efficiency.

- ANI

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Reader Comments

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Aman W
2nm chips at 70% CAGR 🔥 That's insane! Arizona and Japan fabs ramping up is great for global supply chain. But honestly, with the current geopolitical tensions, India should be looking at this as a wake-up call to attract more TSMC investment. We have the talent pool!
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Sneha F
The way TSMC is scaling CoWoS and SoIC packaging at 80-90% annual growth tells me AI demand is here to stay. For us in India, though, it's frustrating because our electronics sector still struggles with basic component manufacturing. We're far from being part of this advanced chip ecosystem.
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Tyler Y
This is what happens when a company dominates the market. 70% growth in 2nm from 2026-2028? That's mind-boggling. Meanwhile, Intel and Samsung are still playing catch-up. I wonder if the A13 process in 2029 will keep TSMC ahead or if competitors will finally close the gap.
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Priya S
I appreciate the technical detail, but what about the cost to consumers? These advanced nodes will make AI chips cheaper eventually, but for now, it's all for big tech companies. The common Indian consumer won't see benefits for years. Let's not pretend this is some democratization of technology.
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Karan T
Fantastic news for the global chip industry! Taiwan's engineering prowess never ceases to amaze me. As an Indian, I can't help but think about how our government's chip incentive schemes need to be more attractive. We keep hearing about "Make in India" for semiconductors, but ground reality is different.

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