TSMC Predicts Ongoing Chip Shortage Amid Rising US Demand

WHO:

Bloomberg - C.C. Wei is the CEO of Taiwan Semiconductor Manufacturing Co. (TSMC).

Bloomberg - TSMC is Taiwan’s largest company and a major player in the global AI industry.

WHAT:

Bloomberg - TSMC's global chip supply will fall short of AI-fueled demand for years to come.

Bloomberg - TSMC will not be able to fulfill demand led by American customers even as more manufacturing capacity comes online in the US over the next few years.

Bloomberg - TSMC forecasts sales growth of more than 30% for the year.

Bloomberg - Major hyperscalers are set to spend $725 billion on AI this year alone.

Bloomberg - TSMC's shares slid 1.7% in Taipei after Broadcom provided a disappointing outlook.

Bloomberg - TSMC staff will receive more than a 30% increase in their bonus payouts this year on average.

WHERE:

Bloomberg - TSMC's annual shareholders’ meeting took place in Hsinchu, Taiwan.

Bloomberg - TSMC has acquired two plots of land in Arizona for future chipmaking plants.

WHEN:

Bloomberg - TSMC plans to build at least four more US chipmaking plants as part of the US-Taiwan trade pact.

Bloomberg - TSMC's investment plan entails $165 billion, requiring roughly an additional $100 billion of capital.

WHY:

Bloomberg - Production capacity remains a key bottleneck in the buildout of global computing infrastructure.

Bloomberg - TSMC aims to ensure a stable business and avoid abrupt price hikes that affected the memory chip sector.

HOW:

Bloomberg - TSMC is expanding its footprint beyond Taiwan to add manufacturing capacity.

(UPDATED June 4, 2026 11:52 UTC)

Taiwan Semiconductor Manufacturing Co., or TSMC, is facing a significant challenge as its global chip supply is projected to fall short of the surging demand fueled by the AI industry for years to come. Despite plans to build at least four more chipmaking plants in the U.S. and a forecasted sales growth of over 30% for the year, TSMC will struggle to meet the needs of American customers even as it expands its manufacturing capacity. In a recent shareholders’ meeting in Hsinchu, Taiwan, TSMC announced that its staff will receive an average bonus increase of more than 30%, while the company continues to invest heavily, with a plan that entails $165 billion and requires an additional $100 billion in capital.