TSMC Stock Slips Amid Record Demand for Next-Gen 2nm Chips

TSMC's stock price slipped by over 1% in extended trading despite reports of increasing demand for its next-generation 2nm chips. The company's major customers, including Apple and Nvidia, have reportedly increased their orders for TSMC's 2-nanometre family by 10% to 20%, pushing expected monthly capacity to around 120,000 wafers by the end of 2026.

This is above earlier estimates of 90,000 to 100,000. The demand signal is unusually broad, with multiple major customers, including Apple, Nvidia, AMD, Qualcomm, and MediaTek, increasing their orders for TSMC's 2nm family.

TSMC expects its first-year 2nm output to be 45% higher than the first-year output of 3nm in 2023. The company is also projecting a capacity growth rate of roughly 70% compound annual from 2026 through 2028, according to reports.

Analysts see TSMC's N2 as more than just a routine process migration, with TechInsights vice-chair Dan Hutcheson noting that the node could become one of the company's greatest hits. However, meeting demand is expensive, and TSMC must finance, equip, and ramp efficiently to maintain profitability.