2nm Demand Drives Record TSMC Investment, Boosts Suppliers

According to Trendforce, to address the robust market demand for 2nm process technology, TSMC (Taiwan Semiconductor Manufacturing Company) will continue to invest in this node. Capital expenditure in 2025 is expected to soar again, reaching between $32 billion and $36 billion, marking a year-on-year growth of 12.5% to 14.3%, making it the second-highest year in its history. Relevant supply chain manufacturers are poised to benefit.

TSMC declined to comment on market rumors, reiterating its previous statements on capital expenditure. In the earnings call this April, TSMC emphasized that its capital expenditure and capacity planning are based on long-term structural market demand. The capital expenditure for 2024 is projected to be between $28 billion and $32 billion. The 2nm process is expected to enter mass production next year, with a production curve similar to that of the 3nm process. The $100 billion investment plan over the past three years has been successful.

Reports indicate that the demand from 2nm customers has been unexpectedly strong. TSMC’s new capacity expansion plan targets the Southern Taiwan Science Park, promoting process upgrades and creating space for new capacity. Trendforce noted that TSMC began the first phase of construction for the 2nm plant at Kaohsiung’s Nanzih Technology Industrial Park in September 2022, with mass production anticipated in 2025. The second phase is already underway, and to further expand production, a third phase has commenced on the east side of the first phase, covering an area of 17.22 hectares. Land changes and environmental assessments have been approved.

Apple remains the leader among TSMC’s 2nm customers and is expected to be the first to apply the technology in smartphone chips. Intel has also expressed interest, with AMD, Nvidia, and MediaTek likely to follow suit.