Broadcom warned that manufacturing capacity at Taiwan Semiconductor Manufacturing Co. (TSMC) has become a critical bottleneck for the artificial intelligence supply chain. Massive AI chip demand is stretching TSMC production to its limits.
Supply constraints will persist through 2026 despite planned facility expansions. TSMC serves as the primary manufacturer for industry leaders including NVIDIA, Apple, and AMD.
Securing advanced manufacturing capacity is now a primary growth constraint for the global technology sector. Broadcom executives stated that TSMC capacity, once considered nearly infinite, has transitioned into a supply chain choke point.
Shortages are spreading to secondary components. Customers are increasingly signing long-term supply agreements to stabilize their inventories.