TSMC expands US fabs to $165B — but admits it can't meet AI chip demand
tsmc plans to invest $165 billion in us fabs, but warns it cannot meet customer demand for ai chips, creating a bottleneck for the industry.
tsmc is struggling to keep up with ai chip demand despite its massive expansion plans, with ceo c.c. wei stating customer demand is so high that the company cannot support everyone without becoming a bottleneck. the firm is investing $165 billion in us manufacturing to build three new plants and two advanced packaging facilities in arizona, though production timelines remain long. this shortage comes as the semiconductor industry faces a memory crunch and deloitte predicts the sector will become a $1 trillion industry by 2027. while the company considered price hikes like those seen for dram and ssds, tsmc confirmed it will not issue abrupt price increases to mitigate the supply constraints.