TSMC Stock Hits Roadblock Despite Strong Demand for Next-Gen Chips
TSMC investors received another strong signal on Monday that demand for the company's next-generation chips is accelerating faster than expected. Industry reports suggest Apple, Nvidia, and other major customers have increased orders for TSMC's 2-nanometre family by 10% to 20%, pushing expected monthly capacity to about 120,000 wafers by the end of 2026.
Despite this strong demand signal, TSMC's US-listed shares slipped over 1% in extended trading. This underscores a shift in the debate from demand towards the cost of delivering it.
TSMC expects first-year 2nm output to be 45% higher than the first-year output of 3nm in 2023, with capacity growing at a roughly 70% compound annual rate from 2026 through 2028. Analysts are increasingly seeing N2 as more than a routine process migration.
TSMC's vice-chair Dan Hutcheson called it 'one of the company's greatest hits', with over 15 customers already working on the node, including Apple, Nvidia, Google, Broadcom, AMD, and others.