Taiwan Semiconductor Manufacturing (TSM) said Thursday it will begin producing advanced 2-nanometer chips in the US sooner than planned to meet increasing artificial intelligence demand.

Chief Executive Officer C.C. Wei said in an earnings call that the chipmaker is "preparing to upgrade [its] technologies faster to N2 and more advanced process technologies in Arizona," due to strong AI customer demand, according to a FactSet transcript.

Wei said the company is also close to securing additional land near its existing site, which will allow the company to "scale up to an independent Gigafab cluster in Arizona," and support customers' needs for smartphone, AI, and high-performance computing applications.

Wei also said that Taiwan Semiconductor's 2-nanometer technology remains on track for volume production later this quarter and that a faster ramp is expected in 2026, driven by smartphone and AI applications.

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