TSMC has reportedly started expanding its manufacturing capacity as demand continues to outpace supply. According to a recent report from UDN, TSMC aims to increase its 2 nm manufacturing capacity at the N2 node, targeting an output of about 120,000 wafers per month by the end of 2026. This represents a 20% increase from the early August target of 100,000 wafers per month by the end of the year, indicating strong customer interest in the latest silicon technology. Even in the early stages, the company confirmed that the N2 node has four times the number of tape-outs compared to its previous leading-edge 3 nm N3 node. With the ramp-up of N2 production underway, the 20% increase suggests that customers are seeking more capacity, even as TSMC continues to scale production, indicating that demand isn't slowing down anytime soon.

At the end of the second quarter of 2026, the N2 node accounted for only 3% of TSMC's revenue, while the 3 nm node held 30%, and the 5 nm node secured the top spot at 33%. However, as we approach the end of Q3, we should see a significant shift in these figures, strongly favoring the N2 node. Until official data is released, we can't be certain of N2's exact revenue contribution, but it is expected to increase significantly based on several factors.Firstly, TSMC achieved about 20,000 wafers per month in late July. An increase to 120,000 N2 wafers by the end of 2026 suggests a corresponding revenue increase. Secondly, TSMC has been discussing price increases with customers, and the N2 node will likely see a significant price hike, as the latest nodes typically require more complex manufacturing processes. TSMC generated $16.26 billion in August, but September's revenue will be particularly interesting to observe as manufacturing scaling continues.