TSMC completes A16 1.6nm process development for 2026 production

TSMC has completed the development and verification of its A16 manufacturing process, which utilizes 1.6-nanometer technology. Mass production for the new node is scheduled to begin in the fourth quarter of 2026. The process is expected to feature advanced technical capabilities, including backside power delivery to improve efficiency and performance.

In response to technological advancements, TSMC has increased its 2026 investment budget to between $60 billion and $64 billion. The company is seeing high demand for future AI GPUs, with Nvidia reportedly making early reservations to secure capacity.

Financial analysts have also adjusted their outlooks for the company. Erste Group Bank increased its FY2026 earnings per share estimate for TSMC to $16.72. Other major institutions, including Barclays, Needham & Company, and Sanford C. Bernstein, have issued positive ratings or raised price targets for the semiconductor manufacturer.