Taiwan Semiconductor Manufacturing Company (TSMC), one of the world’s leading semiconductor manufacturers, reached a major milestone with its 2nm technology, achieving a 60% yield in successful trial production run. This development signifies groundbreaking innovation for the semiconductor industry and wider markets.
TSMC Achieves 60% Yield in 2nm Trial Production
Recent reports reveal TSMC achieved a yield rate of greater than 60% in the 2nm trial production at their Hsinchu factory in Taiwan. Based on the current yield rates, analysts predict that mass production of 2nm chips will begin next year.
While TSMC confirmed Fab 20 will be the main 2nm facility, they are also preparing other sites to assist in production, hosting an equipment installation ceremony for its groundbreaking 2nm fabrication facility in Kaohsuing, Taiwan. TSMC completed this milestone ahead of schedule by 6 months, highlighting their commitment to deliver on their technological innovation. Once open, the new fab will play a crucial role in the mass-manufacturing process of the world’s most advanced chips. Kaohsiung’s Mayor, Chen Chi-mai, revealed during the ceremony that TSMC plans to construct four more fabs in the city, solidifying Kaohsiung’s position as a global hub for continued semiconductor advancements.
Advancing Innovation with TSMC’s 2nm Technology
TSMC say their N2 technology will be the most advanced in the semiconductor industry both in density and energy efficiency when it is introduced:
“N2 technology, with leading nanosheet transistor structure will deliver full-node performance and power benefits, to address the increasing need for energy-efficient computing. With our strategy of continuous enhancements, N2 and its derivatives will further extend our technology leadership well into the future.”
How will 2nm Technology benefit chip designers?
This new technology promises significant advantages for chip designers including increases in performance, higher density, reduction in power consumption and advanced power management. Thanks to the use of TSMC’s NanoFlex Technology, designers will have the ability to mix and match standard cells from different libraries within the same block design, ultimately meaning designs can be tailored to achieve specific performance and efficiency-focused goals. These advancements will support the development of cutting-edge innovation across a range of industries.
Production Updates
Reports indicate that TSMC is on track to begin production in Q4 2025. As the process is a big step up from previous production runs, C.C. Wei, TSMC CEO, confirmed planned capacity for the 2nm process is already more than it was for 3nm.
Major customers have completed 2nm IP design and started silicon validation. TSMC confirmed they have developed low resistance RLD (redistribution layer) and super high performance metal-insulator-metal (MiM) capacitors to further boost performance.
Expected costs and applications
Industry rumors suggest that chips produced on TSMC’s 2nm node could cost up to twice as much as previous 4nm and 5nm chips, with prices potentially reaching $30,000 per wafer. This sharp price increase will likely drive market segmentation and impact widespread industry access.
Apple and Nvidia are expected to be among the first companies to procure chips fabbed on TSMC’s N2 node, though the cost-factor will likely restrict their use to high-margin applications where the performance benefits will justify the higher cost. According to trusted supply chain analyst Ming-Chi Kuo, the soonest we may see these chips in use will be in Apple’s 2026 iPhone lineup but he predicts they will be reserved only for the pro-models.
What’s next for TSMC’s 2nm Technology?
TSMC confirmed that the development of its 2nm technology is progressing ahead of schedule both in performance and yield. The sharp price increase for 2nm chips will have significant implications for chip designers, adoption rates, and end-product pricing. Initially, high-performance computing and advanced mobile devices will be the primary use cases, but widespread adoption will likely depend on cost reductions.
While the trial production results are promising, challenges that may arise in mass-production and other related factors pose a risk. For the semiconductor industry, TSMC’s advancements reinforce their leadership position and set the stage for the next generation of chip design and manufacturing.
Further Reading
Insights into TSMC’s groundbreaking 2nm fabrication facility in Kaohsiung, Taiwan: TSMC First 2nm Fab
An overview of TSMC’s 2nm logic technology and its key features: TSMC 2nm Technology Overview