TSMC says it cannot keep pace with AI chip demand even with US factory expansion

TSMC CEO C.C. Wei stated after a shareholder meeting on Thursday that 'Customer demand is so high, and we can only support so much,' and that it could take a 'very long time' to fulfill customers' needs with US-based production, according to Reuters.

TSMC has already opened a factory in Arizona and plans to invest $165 billion to build three additional plants in the US, alongside two advanced packaging facilities and a research and development center.

The surge in AI use has already created shortages of RAM and NAND Flash memory expected to last for years, and the semiconductor industry could become a $1 trillion industry by 2027 according to Deloitte research.