- Updated: November 25, 2025
- 2 min read
TSMC Accelerates 2nm Fab Expansion to Ten Sites Amid Surging AI Chip Demand
TSMC announced a bold move to boost its 2nm production capacity, expanding from seven to ten fabs across Taiwan and mainland China. The plan adds three new 2nm facilities – two in Taiwan and one in China – bringing the total 2nm wafer output to an estimated 1.5 million wafers per year by 2027.
The expansion is driven by the exploding demand for AI‑powered chips, with major customers such as Nvidia, AMD and Apple seeking the highest performance silicon. TSMC expects the new fabs to start mass production in late 2025, backed by an investment of roughly $30 billion, part of a broader $100 billion capital program for advanced node development.
Strategically, the additional sites reinforce TSMC’s leadership in the sub‑3nm era while diversifying its geographic footprint. The Taiwanese plants will be located near the existing Fab 18 complex, while the Chinese fab will be built in the Shenzhen‑Guangzhou corridor, a region already rich in semiconductor supply‑chain partners.
Industry analysts predict that the increased 2nm capacity will help meet the projected 40% YoY growth in AI chip shipments through 2028, cementing TSMC’s role as the primary supplier for next‑generation compute workloads.
Read the full story on TechNode for more details.
For related insights, explore our coverage of global semiconductor trends and the impact of AI chip demand on the industry.