Customers Are Lining Up for 2nm TSMC N2 Chips

Yahoo

08-05-2025

A battle for customers is brewing between Intel and TSMC as the silicon giants prepare for mass production of their next-gen chips. TSMC has the advantage of already being further ahead in developing its N2, 2nm-class node. It started taking orders in April, with Apple likely being its first major customer. But Intel recently hit the risk reduction milestone in its own journey to produce the sub-2nm 18A node, meaning customers have two very solid, high-density processes to choose from for the next couple of years.
For its part, TSMC appears to be facing even greater demand for N2 than the company saw for its beloved N3 process, according to the China Times, which comes via Wccftech. According to the China Times, the high demand was confirmed by TSMC Chairman Wi Zhejia, who described it as 'unprecedented.' You'd expect a company to toot its own horn, but in this case, it appears very likely that both chip giants are seeing massive demand.
TSMC didn't provide details of the N2 node's defect density rate but said that it's lower than comparable current devices. As Wccftech notes, the defect density rate is likely on par with those of TSMC's older 3nm and 5nm processes. That's a strong selling point for TSMC's process, which is expected to sell its wafers for about $30,000 each.
TSMC research and development. Credit: TSMC
TSMC has multiple fabs earmarked for its N2 process, though not all are going online at the same time. The first fab to produce the node is Fab 20, near Baoshan, Taiwan, which should be ramping up heavily by the last quarter of this year. Kaohsiung is next, with production expected in early 2026. TSMC also appears to have plans for N2 production in Arizona at Fab 21, but that will come later. Prices will likely be higher for the wafers produced in the US, considering that TSMC charges more for its current US 4nm node, but with US tariffs possible, TSMC's Arizona facility could end up helping US customers.
Intel, meanwhile, has a new CEO, a refreshed brand, and a sub-2nm-class node. Broadcom and Nvidia are among those believed to have an interest in chips from the new process. Foundries rarely share specific information about customers, but it seems likely that many big names will take a look at Intel's new node, even as TSMC gobbles up customer orders. For one thing, customers who don't make it to the front of the line for TSMC may eyeball Intel as it ramps up. For another, Intel's 18A includes PowerVia, its backside power delivery network (BPDN). Both TSMC and Intel's latest-gen CPUs have gate-all-around (GAA) transistors for better performance and efficiency, but TSMC didn't put its upcoming BPDN on its N2. That gives Intel an accomplishment to point to, at least until the next generation nodes ramp up.