Taiwan Semiconductor Manufacturing Company (TSMC) commenced high-volume manufacturing of its 2nm (N2) node in January 2026. Yield rates for the new process reached 65–75%, exceeding initial analyst expectations. Major clients including Apple and NVIDIA have purchased the company's entire 2nm capacity through the end of the year.
TSM shares edged up 0.19% today following strong guidance from Applied Materials. The iShares Semiconductor ETF (SOXX) has delivered 19.69% year-to-date returns as of February 13, 2026.
Production costs for the advanced node currently stand at $30,000 per wafer. Demand for AI chips continues to outpace manufacturing capacity despite these elevated costs and ongoing supply chain pressures.