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TSMC Warns AI Chip Shortage, Plans $100B US Expansion

6/4/2026

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Summary

Story summary

TSMC CEO C.C. Wei said the company cannot meet AI-driven chip demand for years, despite new U.S. fabs, and forecasts over 30% revenue growth this year.
TSMC will build four more U.S. fabs, needing about $100 billion and raising its capital-spending outlook to the $56 billion upper limit.
Shares fell 1.7% in Taipei after the announcement, as cloud providers’ $725 billion AI infrastructure spending was cited as causing the capacity shortfall.

History

Historical Context

Intel’s 2004 opening of Fab 24 in Leixlip, Ireland, cost about $2 billion and soon after produced its one-billionth chip in 2005, expanding its European capacity. Inspired by earlier U.S. expansion, TSMC now proposes a $100 billion program for four U.S. fabs to meet soaring AI cloud demand from Amazon and Microsoft, potentially reshaping supply chains.

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Story summary

TSMC CEO C.C. Wei said the company cannot meet AI-driven chip demand for years, despite new U.S. fabs, and forecasts over 30% revenue growth this year.
TSMC will build four more U.S. fabs, needing about $100 billion and raising its capital-spending outlook to the $56 billion upper limit.
Shares fell 1.7% in Taipei after the announcement, as cloud providers’ $725 billion AI infrastructure spending was cited as causing the capacity shortfall.

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