Broadcom sees pressure on chip supply chain due to TSMC’s capacity limits

The global semiconductor supply chain is under increasing strain due to sustained demand for AI chips. According to Broadcom, manufacturing partners are reaching their limits. This is said to apply particularly to TSMC.

According to Reuters, a Broadcom executive stated that TSMC’s production capacity is now visibly under pressure. While the manufacturer was viewed as having virtually unlimited capacity just a few years ago, that situation has since changed. Although expansions are planned through 2027, Broadcom says the current constraints are causing delays that will noticeably impact the supply chain in 2026.

Demand for AI infrastructure is the primary driver of this trend. TSMC previously reported that its advanced production lines are operating at full capacity. Major clients such as Nvidia and Apple rely on this capacity, further intensifying the pressure. At the same time, the chip manufacturer is working to narrow the gap between supply and…