TSMC's CEO, C.C. Wei, announced that global demand for the company's advanced chips is a staggering three times higher than its current production capacity. This significant shortfall highlights the intense, ongoing "chip supercycle" fueled by the artificial intelligence sector, with major industry players heavily dependent on TSMC's manufacturing capabilities. In response, TSMC is aggressively expanding its next-generation 2nm process technology. At its annual Supply Chain Management Forum, the company detailed plans to reach a monthly production of 40,000 2nm wafers by the end of 2025, with projections to double that volume by late 2026. This expansion is backed by a capital expenditure expected to exceed $40 billion. Despite the strong demand outlook, TSMC's stock faced some pressure, partly due to a weighting reduction in the MSCI Taiwan Index which prompted selling. Nevertheless, the confirmation of overwhelming demand underscores the company's powerful market position and growth trajectory amid the global chip shortage.