TSMC at its limits: 175,000 wafers per month are not enough

Taiwanese semiconductor manufacturer TSMC is facing unprecedented demand for chips based on its 3nm process technology. According to Commercial Times, citing industry sources, even with production capacity increasing to 160,000–175,000 silicon wafers per month by Q2 2026, the company cannot fulfill all orders. This is reported by Ixbt.com reports .

The main reason for the sharp increase in demand remains the rapidly developing AI market. For many processor and AI accelerator developers, 3nm technology currently provides the best balance between performance, power consumption, and cost. For this reason, many customers are in no hurry to switch to the more expensive and technologically complex 2nm process.

Against the backdrop of capacity shortages, TSMC is preparing to increase production prices by approximately 15 percent. However, this is unlikely to significantly impact demand: major customers continue to place orders with TSMC factories because there is virtually no full alternative on the market.

This situation is largely explained by the problems of competitors. For example, Samsung Electronics is already offering 2nm production based on GAA (Gate-All-Around) architecture, but the yield of usable dies is approximately 60 percent. Since this figure is lower than TSMC's results, many developers view Samsung not as an equal partner, but as a backup option.

To increase production volume, TSMC plans to invest nearly 28.6 billion dollars in the construction of three new production sites. The company aims to reach a volume of 140,000 wafers per month in the very first year of mass production of 2nm chips.