TSMC says global demand for chips is three times greater than the company can produce

TSMC, the world’s largest chip manufacturer, is still far from meeting the demand for products in the segment it dominates. The person who said this was the company’s CEO, CC Wei, speaking in a recent speech during the SIA Awards. According to the executive, there is three times more demand for semiconductors than TSMC can supply.

The segment with the greatest demand and most saturated is advanced chips, where the Taiwanese manufacturer operates practically alone. This is the area of ​​nodes manufactured on processes of 5nm or less, which has seen accelerated growth in demand with the intense hype for generative AI.

TSMC’s main competitors do not offer the same production capacity and, in many cases, most companies rely more on the Taiwanese company for their orders. Therefore, even with operations expanding to the USA and Japan, the manufacturer is still far from meeting all of the current demand for cutting-edge chips.

The inability to meet the total demand for its chips is not bad news for TSMC, which has orders guaranteed for months and months ahead. Giants such as NVIDIA, AMD and Apple are among the company’s main customers, which end up putting other potential customers on a long waiting list.

While viable alternatives for advanced chips do not appear, other technology companies are unable to offer alternative solutions on the market, also drowning out competitiveness.

It is because of this demand that companies like Intel and Samsung are racing for more advanced processes, seeking to become viable alternatives to TSMC and take advantage of these potential customers. We are getting closer and closer to the official debut of Intel’s 18A process, which promises to offer a leap forward for its Foundry division.

Read more:

This is the time for other manufacturers to emerge, because TSMC must continue to accelerate its expansion plans.

Via: WCCFTech