TSMC to Produce '2nm' Instead of 28nm at Kaohsiung Factory

Targeting Mass Production in 2025 After Pilot Production Next Year
Demand for AI Semiconductors Accelerating Faster Than Expected

Taiwan's TSMC, the world's largest semiconductor foundry (contract manufacturing) company, is reportedly planning to produce cutting-edge 2-nanometer (nm) process products at its factory under construction in Kaohsiung, southern Taiwan, instead of the originally planned 28nm process products.

On the 17th, Taiwanese media including United Daily News cited sources reporting that TSMC plans to establish a 2nm process at its Kaohsiung factory in southern Taiwan, in addition to the 'Fab 20' semiconductor production plant in the Baoshan area of the Hsinchu Science Park in northern Taiwan, to simultaneously produce 2nm products in response to the growth of the artificial intelligence (AI) market.

Taiwan's TSMC, the world's largest semiconductor foundry company, is reportedly set to produce cutting-edge 2-nanometer process products at its factory under construction in Kaohsiung, southern Taiwan, instead of the originally planned 28nm (nanometer, one billionth of a meter) process products.
[Photo by Reuters·Yonhap News]

According to the reports, this decision was made as semiconductor demand in the AI sector has been growing faster than expected recently, with Apple and Nvidia showing positive reactions to the yield of TSMC's 2nm process, and AI-related companies also expressing high interest.

The source stated about the 2nm semiconductors, "Pilot production will take place in the second half of next year at Fab 20 and the Kaohsiung factory, aiming for mass production in 2025," adding, "There is a possibility that related details will be disclosed at the earnings briefing on the 20th."

Another source also reported that TSMC has already decided to install the 2nm process at the Kaohsiung factory and has requested cooperation from the Ministry of Economic Affairs and the Kaohsiung city government regarding power and industrial water supply. Citing supply chain insiders, it was expected that equipment delivery for the 2nm process would begin from the third quarter of next year, with the equipment arrival at Kaohsiung being about one month later than at the Baoshan factory in Hsinchu.

Next-generation Technology: 2nm Foundry Process

The 2-nanometer foundry process is a next-generation technology that TSMC plans to commercialize in 2025. The photo is not related to the specific content of the article. [Photo by Pixabay]

The 2nm foundry process is a next-generation technology that TSMC plans to commercialize in 2025. The 28nm process, which was initially planned to be introduced at the Kaohsiung factory, is a technology that has been commercialized for a long time and is mainly used for products where performance is relatively less critical, such as home appliances, automotive power semiconductors, and sensors.

Therefore, TSMC's decision to replace the 28nm production line with the 2nm process can be seen as a significant change in business strategy. This is interpreted as a response to Samsung Electronics, TSMC's competitor, clearly expressing its intention to take the lead in the 2nm foundry market, prompting TSMC to hasten its investment expansion and countermeasures.

Earlier at 'SFF 2023,' Samsung Electronics announced plans to mass-produce mobile semiconductors using the 2nm process in 2025, manufacture high-performance computing (HPC) products in 2026, and vehicle products in 2027. In particular, Choi Si-young, President of Samsung Electronics' Foundry Business Division, emphasized in his keynote speech, "The AI revolution is opening a new era across all industries," and stated, "Samsung Electronics will continue to innovate transistor technology optimized for AI semiconductors and lead the paradigm shift in AI technology."

This content was produced with the assistance of AI translation services.