This year, we’re still seeing a lot of chips built on the 3nm process. However, that is expected to change in 2026. Thanks to the advancements TSMC has made, we can look forward to chips built on the 2nm process next year. But this doesn’t mean that 3nm or 5nm chips aren’t being made. In fact, a recent report out of Taiwan suggests that TSMC and its 3nm and 5nm production lines are being forecasted to be “100% booked” by next year.
TSMC 3nm process still high in demand
According to industry sources cited by Ctee, capacity utilization rates for both manufacturing nodes are expected to hit 100% in the first half of 2026. Major tech companies like Apple, Qualcomm, NVIDIA, and AMD have reportedly secured substantial production capacity. This has resulted in a queue that stretches into next year. TSMC has been trying to keep up with demand by tripling its 3nm production capacity compared to last year. However, it seems that might not be enough.
The surge in demand is being driven by AI servers, high-performance computing applications, and the AI integration in our smartphones. For example, Apple’s upcoming M5 processors are expected to use TSMC’s 3nm process. Qualcomm’s Snapdragon X2 Elite chips are expected to do the same. On the HPC side of things, NVIDIA’s next-gen Rubin GPU family and AMD’s Instinct MI355X AI accelerator are also in line for 3nm production.
It definitely sounds like TSMC is going to have a busy year, which is great for business. However, it might not be so good for consumers. There are also talks that TSMC could raise its prices. Reports suggest price increases between 5-10% for 3nm and 5nm chips, with CoWoS advanced packaging potentially seeing hikes of 15-20%. Seeing as how TSMC is more or less the only company in the world that can produce at this scale, its customers might have no choice but to bite the bullet.
But what about 2nm?
Like we said, 2nm chips are expected to be the focus of 2026. However, the reality is that while 2nm is a great example of the advancements we’ve made, it might be too expensive for a lot of companies.
Apple is expected to utilize the 2nm process for its A20 chips. These are the chips the company plans to use in its iPhone 18 series. So far, reports suggest that these 2nm chips will be faster and more efficient. However, it is also rumored to potentially cost 50% more.
The reality is that 3nm and 5nm nodes will continue to play a crucial role in chip manufacturing for years to come. Not every device needs the cutting-edge 2nm technology. Plus, the cost difference means 3nm and 5nm will remain viable options for many products.