Qualcomm Warns: TSMC Capacity Nears Limit
According to TechSpot, the global surge in artificial intelligence (AI) is driving unprecedented demand for AI-related chips, pushing advanced semiconductor manufacturing capacities to their limits.
Broadcom has issued a rare and serious warning, highlighting that TSMC’s wafer production capacity is approaching its maximum. This underscores the massive demand AI infrastructure places on leading-edge process nodes and reveals a ripple effect of capacity constraints spreading across the semiconductor ecosystem, reshaping the production landscape for advanced components worldwide.
Natarajan Ramachandran, Product Marketing Director for Broadcom’s Physical Layer Products, stated in an interview, “We are observing TSMC nearing full capacity.” He recalled that just a few years ago, TSMC’s capacity seemed nearly unlimited. Today, the situation has changed dramatically.
Ramachandran added that while TSMC is actively working to increase output, capacity expansion plans are expected to extend into 2027. This makes production limitations the most severe bottleneck in the global semiconductor supply chain throughout 2026.
In January 2026, TSMC publicly noted that current production capacity is extremely tight, primarily due to the global AI infrastructure boom, which is absorbing the majority of its advanced process capacity. The company emphasized its ongoing efforts to narrow the gap between supply and demand. These constraints particularly impact cloud service providers and AI developers who rely heavily on TSMC’s leading-edge nodes for AI and custom chips.
However, this supply pressure extends beyond semiconductors. Ramachandran warned that the tightening is spreading to other hardware components, including laser elements and printed circuit boards (PCBs). He noted that PCB suppliers across Taiwan and mainland China are experiencing capacity limitations, causing significant delays in product lead times. While he did not specify individual companies, the comments reflect systemic pressures affecting the entire hardware manufacturing ecosystem.
