Core Viewpoint - TSMC's 2nm process technology is advancing rapidly, showing defect density performance comparable to the 5nm family and surpassing the 7nm and 3nm processes, indicating a high level of technological maturity and strong potential for mass production in the second half of 2025 [1][2]. Group 1: Technological Advancements - TSMC's 2nm process is expected to significantly boost revenue for supply chain partners such as Zhonghua and Shengyang [1]. - The 2nm process will utilize GAAFET architecture, replacing the long-standing FinFET technology, which enhances transistor density and efficiency while reducing leakage current and power consumption [1]. Group 2: Clientele and Market Demand - Major clients for TSMC's 2nm process include leading companies like Apple, NVIDIA, AMD, Qualcomm, MediaTek, and Broadcom [1]. - TSMC's chairman emphasized that the demand for 2nm technology is unprecedented, far exceeding that of the 3nm process [1]. Group 3: Production Capacity and Expansion Plans - TSMC's 2nm process has entered trial production, with plans to start engineering line validation at the Hsinchu Baoshan Fab 20 in Q4 2024, targeting a monthly capacity of 3,000 wafers, and aiming for mass production by Q4 2025 with a capacity of 30,000 wafers per month [2]. - By 2027, TSMC plans to expand the total monthly capacity for 2nm at Hsinchu and Kaohsiung to 120,000 to 130,000 wafers, with a potential to reach 50,000 wafers by the end of 2025 [2]. - TSMC is investing over 1.5 trillion NTD to accelerate the construction of additional fabs in Hsinchu and Kaohsiung, establishing the largest semiconductor manufacturing hub globally [2].