Taiwan Semiconductor Manufacturing Co. is accelerating its advanced 2-nanometre chip manufacturing expansion as artificial intelligence and high-performance computing demand drives stronger customer orders. Monthly 2nm capacity could reach about 120,000 wafers by the end of 2026, above earlier expectations of 90,000 to 100,000 wafers, according to Taiwanese publication EDN, citing industry sources. Apple, Nvidia, AMD, Qualcomm and MediaTek have reportedly increased orders for TSMC’s 2nm family capacity by 10% to 20%. TSMC is bringing five 2nm fabs online this year, with two in Hsinchu and three in Kaohsiung. Senior Vice President Hou Yung-ching said first-year 2nm wafer output would be 45% higher than 3nm’s first-year output in 2023, while 2nm capacity is expected to grow at a compound annual rate of 70% from 2026 to 2028. TSMC’s U.S.-listed shares nevertheless fell more than 1% in extended trading, highlighting a market focus that is shifting from demand strength to the cost of meeting it.