Taiwan Semiconductor Eyes Rollout Of 2nm Advanced Tech Chips This Year

Taiwan Semiconductor Manufacturing Co TSM explored commercializing its advanced 2-nanometer process using gate-all-around (GAA) technology in the second half of 2025.

South Korean rival Samsung Electronics SSNLF is also looking to launch its own 2nm process by 2025 to narrow the gap with Taiwan Semiconductor, the Chosun Daily reported on Monday.

Samsung was the first to implement GAA in mass production with its 3nm chips in 2022.

Also Read: Nvidia Supplier Taiwan Semiconductor Posts 40% Topline Growth In May, Stock Surges

According to the report, the Taiwanese contract chipmaker will start 2nm production simultaneously at its Baoshan and Kaohsiung facilities within Taiwan’s Hsinchu Science Park.

Taiwan Semiconductor’s 2nm yield is reportedly stable at around 60% to 70%.

Why Does It Matter

2nm (2 nanometers): In semiconductor terms, it refers to the “manufacturing process.” A smaller nanometer number generally indicates more advanced technology, allowing for smaller transistors, higher transistor density (more transistors in the same area), improved performance, and lower power consumption. The 2nm process is at the cutting edge of chip manufacturing.

Achieving 60-70% yield for a brand-new, highly complex, bleeding-edge process like 2nm is considered a very positive sign during the R&D phase.

A yield of 70% or higher (and ideally much higher for mature processes) is desired for profitable mass production.

Who Wants To Buy 2nm Chips?

Apple Inc’s AAPL upcoming iPhone 18 lineup will likely feature Taiwan Semiconductor’s 2nm A20 chip, according to supply chain analyst Ming-Chi Kuo.

Intel Corp INTC has also tapped its long-term supplier, Taiwan Semiconductor, for its advanced 2nm process. Advanced Micro Devices AMD is also a client of Taiwan Semiconductor’s 2nm process.

Taiwan Semiconductor reported first-quarter net sales of $25.53 billion (839.25 billion New Taiwanese Dollars), up 41.6% year over year and topping the analyst consensus estimate of $23.92 billion. However, net sales declined 3.4% quarter over quarter.

Net income and earnings per share were $361.56 billion New Taiwanese Dollars and 13.94 New Taiwanese Dollars per share (or $2.12), topping the analyst consensus of $1.82.

Taiwan Semiconductor guided second-quarter 2025 revenue of $28.4 billion to $29.2 billion, versus the $26.79 billion analyst estimate. 

Price Action: TSM stock is trading higher by 2.56% to $216.52 at last check Monday.

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