[News] TSMC 3nm Monthly Capacity May Hit 180K Wafers by 2026, Up Over 40% YoY on AI Demand

TSMC is accelerating its advanced-node capacity expansion. According to Economic Daily News, citing supply chain sources, its Taiwan-based 3nm fabs were originally expected to reach a monthly capacity of 150,000 wafers by the end of 2026, but this is now projected to increase to 180,000 wafers, about 20% higher than initial estimates.

As the report notes, the company is aggressively ramping up new 3nm capacity. Monthly output stood at around 120,000 to 130,000 wafers at the end of 2025 and is now projected to reach about 180,000 wafers by the end of 2026, representing a year-on-year increase of more than 40%.

During its earnings call, it noted that historically it does not add further capacity once a process reaches its target output. However, to meet strong demand from AI applications, it is expanding capital investment to boost 3nm capacity.

A new 3nm fab in Southern Taiwan Science Park is expected to enter mass production in the first half of 2027. Meanwhile, the second fab in Arizona, where construction has been completed, is scheduled to begin 3nm mass production in the second half of 2027, as the report notes.

The second fab in Kumamoto, Japan will also adopt the 3nm process and is expected to enter mass production in 2028, the report adds.

Demand for 3nm is being driven primarily by AI hardware, including GPUs from NVIDIA and AMD, as well as CPUs, according to TweakTown. Strong demand from NVIDIA, AMD, Intel, and even automotive players is rapidly consuming capacity across its 3nm process family. Even though production targets have already been reached, available capacity remains insufficient to meet demand, the report notes.

2nm Ramp Accelerates as Demand Surges

Meanwhile, following the start of 2nm mass production in late 2025, monthly capacity is expected to ramp up to nearly 100,000 wafers by the end of 2026. Economic Daily News notes that TSMC previously stated it entered mass production in the fourth quarter of 2025 with strong yield performance.

Supported by robust demand from smartphones, HPC, and AI applications, the process is being produced across multiple fabs in Hsinchu and Kaohsiung. Under its ongoing roadmap strategy, TSMC plans to introduce N2P and A16, and expects the 2nm family to become another large-scale, long-term demand driver.

Monthly wafer input for 2nm was around 30,000 to 40,000 wafers at the end of 2025. The report indicates that, if these projections hold, capacity could reach nearly 100,000 wafers by the end of this year, equivalent to an increase of roughly 1.4x to 2.1x within a single year.

Read more

• [News] TSMC Latest Roadmap: A12, A13 for 2029 Without High-NA EUV; A16 Volume Production Delayed to 2027
• [News] TSMC N3 Tightens on AI Demand; Arizona 2nd Fab 3nm Volume Production in 2H27, Kumamoto in 2028

(Photo credit: TSMC)