[News] TSMC Confirms N2P for 2H26, Joins A16 to Cement 2nm-Class as Major, Long-Lived Node

As TSMC races toward 2nm mass production by year-end, the foundry is rolling out fresh updates on its N2 and A16 nodes. Chairman C.C. Wei, cited by TechNews, said that while N2 remains on track, TSMC is also preparing N2P — an upgraded extension of the N2 family that promises higher performance and improved power efficiency, with mass production slated for the second half of 2026.

According to Wei, N2 is set for mass production later this quarter, with yields tracking healthy so far. He expects the N2 ramp-up to accelerate in 2026, driven by strong demand from smartphones and HPC AI applications, TechNews reports.

On the A16 front, Wei highlighted that the node will feature the new Super Power Rail (SPR) architecture, designed for power-hungry HPC workloads, and is also expected to enter volume production in 2H26. He added that the combined N2, N2P, and A16 nodes could make TSMC’s 2nm-class process a major, long-lived manufacturing node.

As per TechNews, when asked about profit margin expectations once the 2nm node enters mass production, TSMC CFO Wendell Huang said it’s still too early to forecast 2026 figures. He noted, however, that while every new node typically dilutes margins during its initial ramp, the N3 node’s dilution effect is gradually easing, and its overall margins are expected to return to the company’s corporate average sometime in 2026. Huang added that, structurally, the N2 node is expected to deliver even stronger profitability than N3.

For reference, in the third quarter, TSMC’s 3nm shipments made up 23% of total wafer revenue, 5nm accounted for 37%, and 7nm for 14%. Overall, advanced technologies — 7nm and beyond — contributed 74% of total wafer revenue.

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(Photo credit: TSMC)