TSMC is ramping up its most advanced chip lines to meet booming AI demand — good news for TSMC, Apple, and the AI chip supply chain.

• TSMC plans to lift 2nm output by about 22% and 3nm output by about 16% by mid-2027.
• The push is driven by demand for AI and high-performance computing chips, plus Apple's next iPhone processors expected to use 2nm.
• Part of the 3nm expansion ties to TSMC's Arizona plants, where production could start in late 2027 or even earlier.
• TSMC is also converting some older 4nm capacity to 3nm as demand for budget and mid-range phone chips weakens.
• Advanced packaging for AI chips is another bottleneck, and TSMC is weighing doubling that capacity.

Outlook: Expect more capacity announcements as AI chip orders keep outrunning supply, with 1.4nm production lined up for 2027.