TAIPEI (Taiwan News) — TSMC announced Monday that its 2-nanometer chips, which will power next-generation supercomputers, are expected to enter mass production in the second half of this year.

The chipmaker held a ceremony in Kaohsiung to mark the expansion of its 2 nm production, per CNA. The event was attended by TSMC executives and key suppliers, as well as government officials including Premier Cho Jung-tai (卓榮泰) and Kaohsiung Mayor Chen Chi-mai (陳其邁), per Anue.

TSMC Executive Vice President and Co-Chief Operating Officer Y.P. Chyn (秦永沛) said in his speech that the investment in Fab 22 in Kaohsiung will exceed NT$1.5 trillion (US$45.22 billion), creating over 7,000 high-tech jobs and more than 20,000 construction jobs.

Chyn said customer designs for the first two years of 2 nm mass production are already set to surpass those of the company’s 3 nm rollout in the same timeframe. Within five years, 2 nm chips are expected to drive approximately US$2.5 trillion in global end-product value.

He added that, combined with TSMC’s fabs in the Southern Taiwan Science Park, the new facility will form the world’s largest semiconductor manufacturing hub.

TSMC’s 2 nm process is currently the most advanced in terms of transistor density and energy efficiency. Compared to 3 nm, it offers a 10–15% increase in speed at the same power consumption, or a 25–30% reduction in power usage at the same speed.