[News] TSMC Reportedly Targets 22% 2nm, 16%+ 3nm Capacity Boost by Mid-2027; CoWoS to Double by 2028

With 3nm poised to overtake 5nm as TSMC’s largest revenue contributor, the foundry giant is stepping up capacity expansion. The Economic Daily News, citing supply chain sources, reports that TSMC has for the first time outlined its 2027 expansion targets, with 2nm capacity set to grow 22% and 3nm more than 16% from end-2026 to mid-2027.

More specifically, TSMC’s 2nm capacity is expected to jump from 90,000 wafers per month at end-2026 to 110,000 by mid-2027, according to the Economic Daily News. The 3nm ramp is equally aggressive, rising from more than 180,000 to 210,000 wafers per month over the same period, the report adds.

For perspective, a previous Commercial Times report citing Wedbush put TSMC’s 3nm capacity at around 150,000 wafers per month in 1H26, while 2nm wafer starts stood at roughly 50,000–60,000 per month.

Against this backdrop, TSMC is adding three 3nm fabs across Taiwan, Arizona and Japan, while continuing to convert 5nm equipment in Taiwan to support additional 3nm capacity, the Economic Daily News reports. At the earnings call in July, TSMC said its 2026 capital spending would range between $60 billion and $64 billion, with about 70%–80% allocated to advanced process technologies.

CoWoS Expansion Is Just as Aggressive

TSMC is stepping on the gas in advanced packaging as well. Wccftech, citing the Economic Daily News, reports that CoWoS capacity could double from roughly 130,000 wafers per month by end-2026 to 260,000 by end-2028. The ramp is expected to center on AP7 in Taiwan and the Arizona campus, where local packaging would reduce the need to ship advanced chips back to Taiwan, the report adds.

Yet booming AI demand could leave room for rivals. Analysts cited by the reports estimate Intel’s EMIB-T capacity, measured in 12-inch CoWoS-equivalent wafers, could climb from 15,000–20,000 per month in 2027 to 40,000–45,000 in 2028. Wccftech notes that the architecture could be particularly well suited for custom AI accelerators from Google and Amazon.

Intel is also gaining fresh validation. According to GuruFocus, MediaTek says its EMIB packaging has reached a “very good level,” signaling improving yields as well as suggesting another sign of Intel’s packaging progress—and further support for speculation that Google could tap EMIB for its TPUs.

Read more

• [News] TSMC 3nm Monthly Wafer Starts to Hit 180K by Early 4Q26 on Strong Demand, 2–3 Months Ahead of Expectations
• [News] TSMC 3nm Monthly Capacity May Hit 180K Wafers by 2026, Up Over 40% YoY on AI Demand

(Photo credit: TSMC)