By Benzinga
Publication Date: 2026-03-24 06:00:00
The company said surging AI demand is stretching production, with Taiwan Semiconductor “hitting limits” and constraining supply through 2026 despite planned capacity expansion, Reuters reported Tuesday.
“We are seeing that Taiwan Semiconductor is hitting (production capacity) limits,” Natarajan Ramachandran, director of product marketing in Broadcom’s Physical Layer Products division, said, according to Reuters. He added that he would have described Taiwan Semiconductor’s capacity as “infinite” until a few years ago.
“They will be increasing the capacity to 2027, but that has become a bottleneck, or that has kind of choked the supply chain in 2026,” he said.
Shortages are also spreading beyond chips to lasers and printed circuit boards, with lead times for some components extending to six months.
Technical Analysis
TSM is trading 3.8% below its 20-day SMA, but 5.5% above its 100-day SMA, a “short-term cooling, longer-term uptrend intact” look. Shares are up…
