Gate News message, April 20 — Taiwan Semiconductor Manufacturing Co (TSMC) announced plans to begin mass production of 1.4-nanometer chips in 2028, driven by rising demand for AI and high-performance computing chips.
TSMC is targeting mass production of 2-nanometer chips in the fourth quarter of 2026, with orders already booked through 2028. The company also plans trial production of 1-nanometer or smaller chips in 2029. The A14 process is expected to use up to 30% less power than 2-nanometer chips at the same performance level, with Apple among likely customers.
TSMC’s aggressive roadmap outpaces competitors. Intel has indicated it may abandon its 14A process if it cannot secure a major outside customer, while Samsung has pushed its 1.4nm mass production target to 2029 as it improves yields for its 2nm process. Both competitors face pressure from High-NA EUV lithography tool costs, which exceed $380 million per unit.
TSMC’s strong financial position supports this expansion. Second-quarter 2025 revenue grew 44% year-over-year with a 59% gross margin, enabling 2025 capital spending of $38 billion to $42 billion. Taiwan’s law requiring the most advanced chipmaking technology to remain on the island further strengthens TSMC’s competitive advantage.
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