TSMC (2330) has strong demand for 3-nanometer technology and tight production capacity, prompting simultaneous expansion of production both domestically and internationally. The legal representative expects that by the end of this year, TSMC's monthly production capacity of 3 nanometer will conservatively reach at least 80000 pieces, and further expand to 100000 pieces in the future; In the future, we will also establish a monthly production capacity of 15000 pieces of 3-nanometer wafers in our factories in the United States and Japan, which is equivalent to a total monthly production capacity of about 130000 pieces of 3-nanometer wafers in our factories both domestically and internationally.

Regarding the progress and plan of the 3-nanometer process expansion that has been rumored, TSMC stated that it does not comment on market rumors. Regarding the relevant production capacity explanation, it will be mainly based on legal statements.

TSMC previously mentioned at a press conference in July that in the second quarter of this year, the company observed a stronger demand for AI and high-end smartphones from customers compared to the first quarter, which will lead to an overall increase in capacity utilization of its industry-leading 3-nanometer and 5-nanometer process technologies in the second half of the year.

TSMC has previously announced that the company is strategically converting some 5-nanometer devices to support 3-nanometer production capacity. And its 3-nanometer process has tripled this year, but it is still in short supply.

The legal representative believes that in response to strong demand from customers, if TSMC wants to increase its 3-nanometer process capacity from 80000 to 100000 pieces as soon as possible, the key lies in where the factory with a capacity of 20000 pieces comes from. The construction of a new factory will definitely be too late in terms of schedule. Therefore, the current assessment should be to move some 5-nanometer process equipment and increase the 3-nanometer process capacity as mentioned above.

TSMC previously mentioned that the company will achieve a compound annual growth rate of 25% in production capacity for 3, 5, and 7 nanometer processes from 2020 to 2024.