Taiwan Semiconductor Manufacturing Company’s stock hits historic levels as the firm begins high-volume 2‑nanometre chip manufacturing and accelerates its U.S. growth plans, driven by strong demand for AI hardware and regulatory easing.
Taiwan Semiconductor Manufacturing Company’s stock opened 2026 at record levels as investors cheered the twin developments of advanced-node production and eased regulatory constraints, according to the report by Ad Hoc News. The sha...
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re price closed at $319.93 on the New York Stock Exchange on Friday, valuing TSMC at more than $1.6 trillion and placing the equity roughly 50% above its 200‑day moving average. On the Taipei exchange the company reached a historic TWD 1,585 close.
The market reaction follows Ad Hoc News’s account that TSMC has formally started high‑volume manufacturing of 2‑nanometre chips at Fab 22 in Kaohsiung and Fab 20 in Hsinchu, and that the U.S. Department of Commerce granted a one‑year export licence covering its Nanjing facility. The licence replaces an expired “Validated End User” status and, the report said, permits imports of U.S. manufacturing equipment without separate approvals for each transaction, reducing a key operational uncertainty for the company’s China operations.
Independent reporting and industry sources provide added detail and context. Tom’s Hardware reported that TSMC had quietly begun volume production of its N2 2nm‑class chips in the fourth quarter of 2025 and that N2 is the company’s first node to use gate‑all‑around nanosheet transistors, with estimated gains of 10–15% in performance or 25–30% lower power versus N3E and transistor‑density improvements of about 15–20% depending on design. Tom’s Hardware also described TSMC’s parallel programme for N2P and a high‑performance A16 variant that uses a backside Super Power Rail, with those enhancements slated to ramp in late 2026.
Yield and capacity figures from multiple industry accounts help explain investor optimism. Kad8 reported pilot yields above 90% at Fab 20’s Baoshan site in early 2025, comfortably exceeding typical mass‑production thresholds and supporting a move to large‑scale output. Capacity guidance varies across publications but points to rapid scaling: SMBOM described an aggressive Fab 22 expansion targeting 10,000–15,000 wafers per month by late 2025 and rising to roughly 50,000–55,000 wafers monthly in 2026, then materially higher through 2028. Separate industry coverage has suggested targets ranging from about 50,000 wafers per month by the end of 2025 to 53,000–60,000 wafers in early to mid‑2026, with broader plans to add multiple Kaohsiung fabs for next‑generation nodes.
The production timeline and customer mix underpin revenue expectations. Ad Hoc News cited market analysts forecasting roughly 21% revenue growth for TSMC in 2026, fuelled by sustained demand for AI hardware and the prospect of Nvidia’s upcoming Rubin architecture being produced on TSMC’s 3nm process next year. AppleInsider reported that Apple is expected to take a substantial portion of early 2nm capacity , as much as half when full production is reached , while other major customers named across industry coverage include AMD, Qualcomm, MediaTek, Broadcom, Intel and Bitmain. SMBOM and other sources say Nvidia and additional HPC and AI clients are scheduled to increase orders through 2027.
TSMC’s U.S. expansion, highlighted by Tom’s Hardware, lends another dimension to the company’s forward outlook. Equipment installation at the Arizona Fab 21 phase 2 is now expected to begin between July and September 2026, accelerating an original plan and pushing mass production of 3nm technology in Arizona toward 2027 rather than 2028. Tom’s Hardware reported that TSMC began construction of Fab 21 phase 3 in April 2025, with the aim of supporting future N2 and A16 production on U.S. soil, a strategic move the company says aligns with customer and government priorities.
Pricing power and margin expectations have also factored into investor sentiment. Industry researchers cited by Ad Hoc News foresee TSMC raising prices by between 3% and 10% across nodes in 2026 to help keep gross margins above 60%, a projection supported by the company’s technological lead and constrained advanced‑node supply.
Operational resilience was tested and affirmed in recent weeks when a magnitude‑7.0 earthquake off Taiwan’s north‑east coast prompted evacuations at Hsinchu Science Park. Ad Hoc News reported that subsequent inspections found no structural damage and no impact to fabrication tools, and that normal production resumed.
Taken together, the combination of early high yields for N2, aggressive capacity expansion plans both in Taiwan and the United States, a temporary easing of export constraints for the Nanjing plant and robust demand from AI and major consumer chip customers has driven the strong market response. Investors are now watching closely for further specifics on scaling and customer allocations at TSMC’s investor conference on 15 January, where the company is expected to clarify ramp timing and production mix for its newest nodes.
Source: Noah Wire Services
