Reports from the semiconductor supply chain indicate that TSMC has surpassed expectations with a 60% yield rate in its trial production of 2nm chips. This significant milestone underscores the company's leadership in semiconductor manufacturing and sets the stage for mass production of its groundbreaking 2nm process, slated to begin in 2025. As the semiconductor industry moves toward more advanced nodes, TSMC's successful trial run highlights its ongoing commitment to innovation and precision.

While TSMC has not disclosed the exact yield rate, the company emphasized that the 2nm process is progressing smoothly, with mass production on track for 2025. It is expected to be the most advanced technology in the industry at that time. According to the supply chain, the Baoshan facility in Hsinchu, Taiwan, is currently serving as a test production line for the 2nm process, and the focus for future mass production will shift to TSMC's Kaohsiung facility.

The 2nm process, which adopts an advanced Nanosheet architecture, presents a more complex and higher threshold compared to TSMC’s current 3nm FinFET technology. This innovation is expected to drive performance gains in the next generation of chips, with TSMC already preparing to replicate the Baoshan facility’s trial production success at its larger Kaohsiung plant, which will serve as the primary site for mass production.

Apple and Nvidia are expected to be the first companies to deploy TSMC’s 2nm chips, with rumors suggesting that these chips will power the iPhone 18 Pro, expected in 2026. Although previous reports had speculated about their inclusion in the iPhone 17 Pro, the revised timeline now places the 2nm debut in 2026. Due to the advanced nature of the 2nm process, these chips are anticipated to be priced at a premium—potentially double that of TSMC’s existing 4nm and 5nm chips, with a cost per wafer estimated at around $30,000.

The 2nm chips are expected to be in high demand, particularly from AI-driven companies, as TSMC continues to dominate the production of AI chips, with 99% of the world’s AI chips currently being manufactured by TSMC. The company’s 3nm production is also seeing strong demand, further establishing TSMC as a key supplier for the growing AI market. In addition to its advanced manufacturing capabilities, TSMC is also pushing forward with its 3D Fabric technology platform, a system that integrates both front-end and back-end production processes, enhancing its position as a one-stop shop for semiconductor manufacturing.

Looking ahead, TSMC's 2nm process is on track for mass production in 2025, and the company is already planning the launch of its A16 process node, which will combine Super Power Rail architecture with Nanosheet transistors. This new process is expected to hit the market in 2026, with Apple likely to be a key customer.

While competitors like Samsung and Intel are also advancing their respective technologies, including Samsung’s GAAFET architecture and Intel's 18A RibbonFET node, TSMC remains the leader in the race for the next generation of semiconductor manufacturing. With its 2nm process poised to set new industry standards, TSMC is well-positioned to maintain its dominance in semiconductor innovation and meet the growing demand for chips in AI, mobile, and consumer electronics.