[News] TSMC Kaohsiung 2nm Fab Moves In, Apple and AMD Expected as First Customers

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According to Economic Daily News, TSMC’s new 2nm fab in Kaohsiung marked a significant milestone today with its equipment installation ceremony, achieving three notable records. First, it represents TSMC’s inaugural 12-inch fab in Kaohsiung, preparing for mass production in 2025. Second, the equipment installation commenced over six months ahead of schedule. Third, once operational, the Kaohsiung fab will produce the world’s most advanced chips, with Apple and AMD expected to be among its first customers.

TSMC’s 2nm production strategy in Taiwan advances along two paths: the Hsinchu Baoshan fab and the Kaohsiung plant, both slated for mass production in 2025. The Baoshan facility leads the charge, having begun equipment installation in April 2024.

Initially planned for mature process technologies, the Kaohsiung fab pivoted to 2nm expansion following a board decision in August 2023. The original schedule anticipated equipment installation by Q3 2025. However, with today’s ceremony, the timeline has been accelerated by over six months.

Robust Demand for 2nm Technology

The report further highlights TSMC’s strong confidence in 2nm orders. Chairman C.C. Wei recently noted during an earnings call that while high-performance computing (HPC) is moving toward chiplet designs, this trend has not diminished customer demand for 2nm technology. On the contrary, customer inquiries have surged, with demand for 2nm exceeding that of 3nm, and capacity is projected to be even higher.

Industry sources cited by Economic Daily News pointed out that TSMC’s most advanced process in southern Taiwan currently resides in Tainan’s Science Park, where the 3nm family is produced. If Kaohsiung successfully commences 2nm mass production, it will become southern Taiwan’s most advanced production hub. Moreover, due to robust market demand, the supply chain has suggested that Tainan’s facilities may join 2nm production.

(Photo credit: TSMC)