Chip manufacturer TSMC will use chip design software from US firms to produce 2nm chips and expect to reach volume production of 2nm chips in 2025. The chipmaker increased its revenue growth target from between 24% and 29% to between 34% and 36% this year due to high utilization of production capacity.

Why it matters: TSMC and Samsung have been racing to reach volume production of 3nm chips first. On Aug. 30, TSMC claimed the 3nm chip will be put into volume production this month, despite encountering difficulties. As a result, the 2nm node is becoming the next competitive point for top chip makers.

Details: TSMC said they would achieve volume production of 2nm chips in 2025 and will use electronic design automation (EDA) software from the US to produce 2nm chips, according to UDN.

  • The firm also revealed that the EDA software for advanced procession chips involves collaboration with US firms. In addition, American and European firms also lead other key sub-sectors in chip making, including IP, EUV lithography, and process monitoring equipment.
  • A legal representative of TSMC estimated that US EDA software and IP will be at the core of the chip design industry in the next five to ten years, the report said.
  • C.C. Wei, chief executive officer of TSMC, said on Aug. 30 that their leading 2nm tech will adopt a new nanosheet architecture, creating chips with stronger performance and endurance, and withstand higher currents.
  • Wei also emphasized that TSMC is capable of designing chips itself but chose instead to focus on producing chips for clients.

Context: Last month, the US banned mainland China from accessing EDA software for advanced chipmaking. Meanwhile, the UK declined an acquisition of a local EDA firm by a Chinese company last month due to concerns about potential use by China’s military.

  • American EDA firms control over 77% of EDA market shares in China in 2020, according to China’s CCID Consulting.
  • Chinese local EDA providers like Primarius Technologies claimed the firm had “formed core key tools that can support advanced process nodes such as 7nm, 5nm, and 3nm,” according to their website.

Update: We have updated TSMC CEO’s name from Wei Zhejia to C.C. Wei.

Ward Zhou is a tech reporter based in Shanghai. He covers stories about industry of digital content, hardware, and anything geek. Reach him via ward.zhou[a] or Twitter @zhounanyu.