TSMC Expands Global 3nm Production Amid AI Demand
TSMC is expanding its 3-nanometer chip production across Taiwan, the United States, and Japan. The move follows strong demand for AI semiconductors, which continues to strain global supply. As a result, the company is scaling capacity across multiple regions at the same time. The expansion aligns with record first-quarter earnings driven by sustained AI chip orders.
Three-Region Buildout Accelerates Capacity
In Taiwan, TSMC is constructing new 3nm production lines at Tainan Science Park. These lines are set to begin mass production in the first half of 2027. At the same time, the company is converting existing 5nm equipment to support 3nm output.
Meanwhile, in Arizona, the second fabrication facility has reached construction completion. Commercial 3nm production is scheduled for the second half of 2027. In addition, TSMC is advancing its second fab in Kumamoto, Japan, which will begin volume 3nm production in 2028.
Therefore, the three-continent expansion reflects a coordinated effort to meet rising demand across industries. AI, smartphones, automotive systems, and IoT devices continue to drive this growth. Consequently, TSMC is optimizing capacity across its 7nm, 5nm, and 3nm nodes to improve supply efficiency.
Strong Financials Support Expansion Strategy
TSMC’s financial results reinforce the scale of current demand. First-quarter revenue reached $35.9 billion, which marked a year-over-year increase of over 40%. In addition, gross margins rose to 66.2%, while operating margins reached 58.1%.
Moreover, advanced nodes accounted for a large share of revenue. Chips at 7nm and below represented about 74% of wafer sales, while 3nm alone contributed 25%. Looking ahead, TSMC expects further growth in the second quarter, with projected revenue between $39 billion and $40.2 billion.
At the same time, the company continues to invest in advanced packaging technologies to support next-generation chips. Furthermore, demand remains strong across global markets, with U.S. fabrication capacity already fully allocated.
