TSMC bets big on AI as chip industry eyes record growth
Taiwan Semiconductor Manufacturing Company (TSMC) revised its forecast, predicting the global semiconductor market will exceed $1.5 trillion by 2030, with AI and high-performance computing accounting for 55% of demand. The company is accelerating production expansion in Taiwan, Arizona, Japan, and Germany, targeting rapid growth in advanced 2-nanometer chips, A16 chips, and AI accelerator wafers.
Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest contract chipmaker, has raised its forecast for the global semiconductor market to $1.5 trillion by 2030, up from a previous estimate of $1 trillion. The company attributes this growth to surging demand for AI and high-performance computing, which are expected to make up 55% of the market, while smartphones and automotive applications will account for 20% and 10%, respectively. TSMC is accelerating capacity expansion, planning to construct nine phases of wafer fabrication plants and advanced packaging facilities by 2026. The company anticipates a 70% compound annual growth rate (CAGR) for advanced 2-nanometer and next-generation A16 chips between 2026 and 2028. Demand for AI accelerator wafers is projected to increase elevenfold from 2022 to 2026 as AI adoption expands globally. In Arizona, TSMC’s first fabrication plant is already operational, with a second fab under equipment installation for the second half of 2026 and a third fab currently under construction. A fourth fab and the site’s first advanced packaging facility will begin construction this year. The company expects Arizona’s production output to rise 1.8 times year-on-year by 2026, with yields matching those in Taiwan. TSMC has also completed purchasing a second large parcel of land in Arizona to support future expansion. In Japan, TSMC’s first fab is in mass production for 22-nanometer and 28-nanometer chips, while plans for a second fab have been upgraded to include 3-nanometer technology. In Germany, construction of TSMC’s fab is on schedule, initially targeting 28-nanometer and 22-nanometer production before expanding to 16-nanometer and 12-nanometer capabilities. TSMC’s advanced CoWoS packaging technology, critical for AI chips including Nvidia processors, is expected to see a CAGR exceeding 80% from 2022 to 2027. The company’s strategic investments in global production capacity reflect its confidence in sustained growth driven by AI and high-performance computing demand.
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