TAIPEI (Taiwan News) — TSMC said its 2nm process is progressing smoothly and will enter mass production this year, UDN reported Tuesday.

The world’s largest chipmaker said in an earnings report its 2nm development is progressing smoothly. Device performance and yields are meeting or exceeding expectations.

TSMC claims 2nm will be the most advanced process upon its release. At a tech forum in December, the company said 2nm offers 35% power reduction or 15% performance improvement at the same voltage.

TSMC plans to use its fabs in Hsinchu and Kaohsiung for 2nm production, per TrendForce. Former TSMC Chair Mark Liu (劉德音) explained that while high-performance computing is accelerating toward chiplet designs, this trend will not affect 2nm adoption.

Market insiders suggested that Apple will be the first customer for TSMC’s 2nm process, followed by MediaTek, Qualcomm, and Intel, per MoneyDJ. Reports say the Cupertino-based company’s A20 chip for the iPhone 18 will be the first to adopt 2nm.

However, industry sources say that although the 2nm yield rate is stable at more than 60%, wafer costs may shoot up to US$30,000 (NT$988,000), per Anue. To reduce costs, the chipmaker may need to ensure sufficient production capacity, it added.