Broadcom director Natarajan Ramachandran warns that manufacturing partner TSMC is nearing its production capacity limits. Surging demand for AI chips has created a supply chain bottleneck projected to persist through 2026.
The shortage continues even as TSMC works to expand its manufacturing capacity. Ramachandran identified additional supply constraints for lasers and printed circuit boards (PCBs) that are contributing to longer lead times.
This industry-wide pressure reflects AI hardware demand accelerating faster than the supply ecosystem can support. Customers are now entering long-term agreements to secure their future hardware supply.