TSMC says AI chip demand will outpace supply for years

Taiwan Semiconductor Manufacturing Company (TSMC) will be unable to meet the surging global demand for artificial intelligence chips for years to come, Chief Executive C.C. Wei told shareholders on Thursday. The warning underscores the persistent capacity constraints facing the semiconductor industry even as the world’s leading contract chipmaker undertakes a massive global expansion.

Wei made the comments at the company’s annual shareholder meeting in Hsinchu, Taiwan. He stated that demand from American customers, which include major technology firms like Nvidia, AMD, and Apple, will continue to outstrip supply despite new manufacturing facilities coming online in the United States over the next several years. Wei reiterated TSMC’s forecast for revenue growth exceeding 30 percent this year, an outlook the company recently raised.

The capacity shortage is driven by immense investment in AI infrastructure. Major cloud computing providers, often called hyperscalers, are projected to spend hundreds of billions of dollars on AI this year alone, with TSMC manufacturing the advanced semiconductors required for these systems. In response to this demand, TSMC is significantly expanding...