TSMC to significantly expand 3nm production in Taiwan to over 200,000 wafers/month, shifting 2nm fab plans

TSMC is prioritizing a significant expansion of its 3nm production capacity in Taiwan, planning to increase output to over 200,000 wafers per month by adding three new fabs in Tainan, shifting from previous 2nm plans due to surging AI/HPC demand. While facing pressure from the US for additional fab investments there, TSMC will address US expansion flexibly, likely after White House approval, in exchange for potential tariff reductions. The company is also raising foundry prices for the fourth consecutive year to offset higher operating costs from international expansion and will simultaneously expand CoWoS advanced packaging capacity in Taiwan.