Broadcom director Natarajan Ramachandran announced that primary manufacturing partner TSMC is reaching its production capacity limits. Explosive demand for AI chips is driving the current shortage.
The global semiconductor supply chain faces a significant bottleneck expected to persist through 2026. TSMC's planned capacity expansions are not scheduled to begin until 2027.
Industry constraints extend beyond chip fabrication to critical components like lasers and printed circuit boards. These shortages are causing extended delivery times for customers.
Companies are responding by securing long-term agreements with suppliers. These contracts aim to guarantee production capacity for the coming years.