TSMC expects AI chip shortage to persist for years - Techzine Global

TSMC CEO C.C. Wei stated that global demand for AI chips continues to far exceed production capacity, a shortage expected to persist for years. This reflects the immense pressure on the semiconductor ... Read original →

TSMC’s forecast of a multi-year AI chip shortage reflects a structural mismatch between sub-3nm capacity and explosive demand from AI infrastructure. Technologically, this accelerates investment in CoWoS packaging, HBM memory, and optical I/O, forcing NVIDIA and AMD to pre-reserve 2027 wafer allocations. Geopolitically, U.S. CHIPS Act subsidies come with hidden costs: Arizona fabs face yield ramp delays and labor inefficiencies, increasing operational risk. Competitors like Samsung and Intel may undercut prices, but lack TSMC’s EUV density and ecosystem lock-in. Over the next 12–24 months, AI chip allocation will increasingly resemble futures contracts—hyperscalers will secure supply via equity stakes. Crucially, Taiwan, China’s dominance in advanced nodes makes its supply chain stability a silent chokepoint in global AI ambitions.