Taiwan Semiconductor Starts Making Its Most Powerful Chips At Scale

Taiwan Semiconductor Manufacturing Co. (NYSE:TSM) stock rose on Wednesday after the company confirmed that it has officially begun volume production of its 2-nanometer chips.

The contract chipmaker began mass production in the fourth quarter of 2025 at Fab 22 in Kaohsiung, according to a recent update on the company's website.

The new chips rely on the company's first-generation nanosheet transistor architecture, which delivers major gains in performance and power efficiency, Focus Taiwan reported on Tuesday.

Also Read: Taiwan Semiconductor Plans Price Hike For Advanced Chips: Report

Looking ahead, Taiwan Semiconductor is already advancing development of its N2P process, an enhanced version of the 2nm node, with mass production targeted for the second half of 2026.

Massive Expansion Plans to Meet AI Demand

A November report indicated Taiwan Semiconductor is ramping up its 2nm expansion to capitalize on surging AI demand, increasing the number of planned 2nm fabs from seven to ten.

The chipmaker informed Taiwanese government agencies that it plans to add three new 2nm fabs in Tainan's Southern Science Park, in addition to its existing facilities in Hsinchu and Kaohsiung.

The project carries an estimated price tag of about 900 billion Taiwan dollars ($28 billion) and could break ground as early as next year.

Taiwan Semiconductor expects the new fabs to enter mass production by 2026, which will lift combined monthly output to more than 100,000 wafers.

Smaller process nodes improve power efficiency and performance, making 2nm chips critical as AI workloads continue to grow.

Apple And Nvidia Lock In Advanced Capacity

As Taiwan Semiconductor ramps up production, its most advanced capacity is already in high demand.

Apple Inc. (NASDAQ:AAPL) and Nvidia Corp. (NASDAQ:NVDA) are locking up much of Taiwan Semiconductor's most advanced capacity.

Apple has already secured more than half of Taiwan Semiconductor's 2nm production capacity for 2026, according to Taiwan-based reports.

TSM Price Action: Taiwan Semiconductor shares were up 1.89% at $305.23 at the time of publication on Wednesday, according to Benzinga Pro data.

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