TSMC is at the center of an intense contest for advanced chip capacity, with AI customers fighting for limited wafer supply. The company's record quarter highlights the demand, but new fabrication plants will take years to come online. In the meantime, TSMC is adding ASML's extreme ultraviolet lithography machines to existing factories to boost output. ASML itself reported stronger-than-expected profits and said customers are interested in placing orders through 2030.
Capacity constraints are creating opportunities for the other two leading advanced chipmakers, Samsung and Intel. Analysts note that customers want a second source to keep TSMC honest on pricing. Intel, the only U.S.-based advanced logic manufacturer, has struggled with delays, but all big chipmakers are now testing there. Trade group SEMI expects 102 new chip fabs globally by 2029, with China nearly tripling capacity by 2030 and U.S. fab investments more than doubling.
TSMC's strategic position remains strong, especially with its growing Arizona presence, but the competitive landscape is shifting. As one analyst put it, TSMC is "one of the best strategically positioned companies on the face of the planet," even as rivals circle. The source provides no conflicting views, so the outlook is consistent across the reporting.