TSMC Targets 2025 for 2nm Chip Production Amid Technical and Political Challenges

The semiconductor giant's ambitious plans face hurdles including complex manufacturing processes, geopolitical constraints, and delayed U.S. production timelines.

TSMC plans to begin mass production of its 2nm chips in Taiwan by 2025, featuring advanced gate-all-around (GAA) transistors and backside power delivery for improved performance and efficiency.
The company will initially avoid using high-NA EUV lithography for 2nm production, citing limited availability of the expensive machines, which could impact the process's full potential.
Taiwan's government has mandated a three-year delay before exporting 2nm technology abroad, potentially pushing U.S. production to 2028 or later despite ongoing construction of Arizona fabs.
TSMC's Arizona facilities, supported by $6.6 billion in CHIPS Act funding, are expected to produce 3nm chips initially, with 2nm production contingent on resolving delays and cost overruns.
Geopolitical tensions and Taiwan's strategic decision to keep core technologies domestic add complexity to scaling 2nm production globally.