TSMC bets big on AI as chip industry eyes record growth

Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest contract chipmaker, said the global semiconductor market is expected to surpass $1.5 trillion by 2030, raising its previous forecast of $1 trillion, according to presentation materials released ahead of its technology symposium on Thursday, News.Az reports, citing Reuters.

The company said artificial intelligence and high-performance computing are projected to make up 55% of the future semiconductor market. Smartphones are expected to account for 20%, while automotive applications are forecast to represent 10% of the industry’s total value.

TSMC also stated that it is accelerating capacity expansion during 2025 and 2026. The company plans to construct nine phases of wafer fabrication plants and advanced packaging facilities in 2026.

The chipmaker expects production capacity for its advanced 2-nanometer chips and next-generation A16 chips to grow rapidly, forecasting a compound annual growth rate (CAGR) of 70% between 2026 and 2028.

TSMC further said the CAGR for capacity of its advanced CoWoS (Chip on Wafer on Substrate) packaging technology is expected to exceed 80% from 2022 through 2027. CoWoS is considered a critical packaging technology for AI chips, including processors designed by Nvidia.

According to the company, demand for AI accelerator wafers is projected to increase elevenfold between 2022 and 2026 as AI adoption continues to expand globally.

In Arizona, TSMC said its first fabrication plant is already in production. Equipment installation at the second fab is scheduled for the second half of 2026, while construction of a third fab is currently underway. The company also plans to begin work this year on a fourth fab and the site’s first advanced packaging facility.

TSMC expects Arizona production output to increase 1.8 times year-on-year by 2026, with manufacturing yields matching those achieved in Taiwan. The company also confirmed it has completed the purchase of a second large parcel of land in Arizona to support future expansion plans.

In Japan, TSMC said its first fab is already in mass production for 22-nanometer and 28-nanometer products. Due to strong market demand, plans for the second fab have been upgraded to support 3-nanometer technology.

Meanwhile, in Germany, the company said construction of its fab is progressing on schedule. The facility is expected to initially provide 28-nanometer and 22-nanometer technologies before later expanding to include 16-nanometer and 12-nanometer production capabilities.

News.Az 

By Nijat Babayev