Taiwan Manufacturing Company is struggling to keep pace with surging demand for AI chips from major tech companies and startups. Nvidia, Apple, Broadcom, AMD and others are competing fiercely for limited manufacturing capacity, creating a bottleneck that could slow AI deployment. TSMC is racing to expand with $265 billion in investment across new fabs in Taiwan, Japan and Arizona, but production cannot come online fast enough to meet demand.
The capacity crunch has made a single TSMC executive the most sought-after contact in the industry, with CEOs and startup founders traveling to Taiwan to negotiate wafer allocations. The shortage is also creating an unexpected opportunity for Intel's foundry business, as customers seek alternative suppliers to diversify their manufacturing sources and reduce reliance on TSMC.
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