By Anusuya Lahiri
Publication Date: 2026-03-31 18:31:00
A severe capacity crunch at Taiwan Semiconductor Manufacturing Company Ltd. is forcing major clients, including Nvidia Corp. and Tesla Inc., to seek alternatives, positioning Samsung Electronics Co. Ltd. as a rare second source for cutting-edge chips.
Taiwan Semiconductor’s 3nm process has entered a rare state of “overload,” as chip designers and hyperscale cloud providers such as Amazon.com Inc. and Microsoft Corp. compete aggressively for limited capacity, Technode reported on Monday, citing DigiTimes and TechWeb reports.
The supply crunch has turned Taiwan Semiconductor’s production capability into a key bottleneck, with demand far exceeding available capacity.
The report added that this sharp mismatch between supply and demand is already interfering with the product development timelines of several companies.
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