TSMC projected that the global semiconductor market will exceed $1.5 trillion by 2030, increasing from a previous forecast of $1.0 trillion. The company stated that 55% of this anticipated market growth will come from artificial intelligence and high-performance computing, with smartphones contributing 20% and automotive applications accounting for 10%.
The demand for AI accelerator wafers is expected to surge, increasing 11 times in 2023 compared to 2022, according to TSMC’s presentation. This development highlights the rapid evolution of AI technologies from niche applications to mainstream business discussions.
In response to this growing demand, TSMC is rapidly expanding its production capabilities. The company is constructing new facilities beyond its traditional base in Taiwan, including a plant in Arizona, which received a $6.6 billion grant from the U.S. government. The Arizona facility is already producing 4nm chips and is expected to transition to 3nm and 2nm technology in the future.
A second fabrication plant in Arizona is nearing completion, with advanced chip-making machinery scheduled to arrive later this year. A third fab is currently under construction, and plans for a fourth facility and an advanced packaging site are in the works. TSMC aims to acquire additional land for future expansions in Arizona, projecting a 1.8 times year-on-year increase in production capacity from the Arizona fab, achieving yields comparable to those of TSMC’s fabs in Taiwan.
Additionally, TSMC operates a fabrication facility in Japan that produces older 22nm and 28nm chips, targeting various applications including automotive parts. The company plans to commence 3nm production at a second fab in Japan.
A new facility is also under development in Germany, which will start by producing 22nm and 28nm parts, with future potential to introduce 16nm and 12nm capabilities.
