TSMC forecasts that the global semiconductor market will exceed $1.5 trillion by 2030, up from a previous estimate of $1.0 trillion, according to Reuters. The company attributed this substantial increase to the rising demand for AI silicon, projecting that 55% of the market will arise from AI and high-performance computing, while smartphones will contribute 20% and automotive will account for 10%.
Demand for AI accelerator wafers is expected to surge by 11 times in 2023 compared to 2022, indicating significant short-term growth in the sector. TSMC is responding to this demand by accelerating the construction of new production facilities beyond Taiwan.
In the United States, TSMC’s Arizona plant, aided by a $6.6 billion grant from the U.S. government, is already producing 4nm chips, with plans to transition to 3nm and 2nm production in the future. A second fab in Arizona is nearing completion and will receive advanced chip-making machinery later this year. Additionally, TSMC is currently constructing a third fab in Arizona, with plans for a fourth facility and an advanced packaging site as well. The Arizona operations are projected to see a 1.8-fold increase in year-on-year production, achieving yields comparable to the company’s Taiwan fabs.
TSMC also operates a fabrication plant in Japan that produces older 22nm and 28nm chips, primarily for automotive components and low-power applications. A second facility in Japan is planned to begin producing 3nm chips. Furthermore, TSMC is developing a plant in Germany, which will start with manufacturing 22nm and 28nm parts, with intentions to scale up to 16nm and 12nm capabilities at a later stage.
