TSMC expands 2nm and 3nm capacity with new Arizona plant

TSMC is accelerating the expansion of its advanced semiconductor manufacturing capacity to meet high customer demand. The company is ramping up production for 2nm and 3nm chip nodes, with 2nm monthly wafer capacity projected to grow from 90,000 units at the end of 2026 to 110,000 units by mid-2027. Similarly, 3nm monthly capacity is expected to increase by 16% to 210,000 units.

As part of its global footprint, TSMC is constructing a new facility in Arizona, USA, which is scheduled to begin commercial mass production of 3nm chips in the second half of 2027. To support these expansions, the company's 2026 capital budget is estimated between $60 billion and $64 billion, with 70% to 80% of those funds dedicated to advanced manufacturing nodes.

Looking toward future technologies, TSMC is developing angstrom-level processes, including A16, A14, A13, and A12. Additionally, the company is collaborating with ASML to upgrade High-NA EUV equipment, focusing on transitioning from 6-inch to 12-inch reticles to improve manufacturing efficiency for future chip generations.