[News] Broadcom Reportedly Flags TSMC Capacity as 2026 Bottleneck, With Lasers and PCBs Also in the Squeeze

While NVIDIA—reportedly TSMC’s largest customer—has repeatedly signaled it is pushing for additional wafer allocation amid tight supply, it is far from alone in feeling the strain. According to Reuters, citing Natarajan Ramachandran, director of product marketing in Broadcom’s Physical Layer Products division, TSMC is now approaching the limits of its production capacity.

Ramachandran told Reuters that the scenario marks a stark shift from just a few years ago, when he would have described the foundry giant’s capacity as effectively “unlimited.”

Despite TSMC’s ongoing expansion plans through 2027, Ramachandran warned the ramp-up is already falling short of near-term demand, characterizing the situation as a growing choke point that is “effectively a bottleneck—constraining, and in some respects choking, the…