TSMC 2nm process expected to be a game-changer for both AMD and Intel

TSMC's 2nm (N2) process is shaping up to be one of the most important semiconductor nodes in recent history. Compared to 3nm, demand for 2nm is expected to be significantly higher, as mobile, HPC, and data center customers are knocking at TSMC's door, asking to be added to its customer list.

Notably, N2 will mark a shift in semiconductor technology as it features the Gate-All-Around transistors (GAAFET), which promises big improvements in efficiency and density compared to traditional FinFETs. GAAFET is slated to allow for increased performance at the same power level or lower power at the same performance compared to older technology. GAAFET was expected to enter risk production in late 2024 and mass production in 2025, with a commercial launch for chips set for the first half of 2026.

With the shift to a new technology, TSMC has tech companies flocking to become customers, and one of the first major adopters of the N2 node is AMD, with the company already confirming it will be using the N2 with its next-generation EPYC CPUs codenamed "Venice," which are headed for data centers. TSMC's N2 node is truly the bleeding edge, and AMD's commitment to the Taiwanese semiconductor manufacturer is to further strengthen its position against Intel, its direct competitor.

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As for Intel, the company is planning a mix of internal and external manufacturing, with the company's Nova Lake CPUs now being expected to feature a compute tile produced on TSMC's N2 process. According to a Morgan Stanley note shared by @QQ_Timmy, Intel has decided to jump on the N2 train for Nova Lake CPUs due to subpar yield rates of the 18A node. However, that hasn't been confirmed.

We will have to wait until Intel releases its Panther Lake CPUs to know how well the 18A node has matured, and those processors are expected to debut this quarter, with mass production expected to be pencilled in for early 2026.

Zooming out, TSMC stands to dominate next-gen CPU production, as both AMD and Intel have seemingly committed to its N2 process. Then there's TSMC's development in the GPU space, with the Taiwanese semiconductor manufacturer being the sole provider of all of NVIDIA's cutting-edge GPUs, which are fuelling the global AI race and the vast majority of PCs around the world.

Zooming out even further, TSMC is the backbone of the entire semiconductor market, underscoring the dominance of the Taiwanese manufacturer and the global reliance on its cutting-edge chip supply, whether it be CPUs or GPUs.