Taiwan Semiconductor Manufacturing Co. (NYSE:TSM) is reportedly accelerating factory construction and equipment deliveries after Nvidia Corp. (NASDAQ:NVDA) CEO Jensen Huang’s Taiwan visit underscored surging AI chip demand, pushing suppliers to operate at full capacity well into 2026.
TSMC Speeds Up Fab Construction As AI Demand Surges
TSMC is ramping up plant construction and capacity expansion across Taiwan and the U.S. as demand for artificial intelligence chips continues to soar, according to a report by Taiwan’s Liberty Times.
Industry sources cited in the report said TSMC has urged equipment suppliers to shorten delivery times to ensure additional production capacity comes online next year.
The push gained momentum after Huang traveled to Taiwan in early November and sought more advanced chips to support the company’s AI roadmap.
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Advanced Nodes, Packaging At Center Of Expansion
TSMC is currently building and expanding multiple advanced-node fabs, including 2-nanometer facilities in Hsinchu and Kaohsiung, while expanding 3-nanometer capacity in southern Taiwan.
Construction has also begun on a 1.4-nanometer fab in central Taiwan, alongside major investments in advanced packaging facilities, including chip-on-wafer-on-substrate, or CoWoS.
Overseas, TSMC’s U.S. operations remain highly active, with its first fab already in mass production and two additional fabs under development.
Industry experts estimate TSMC’s capital spending next year could reach $48 billion to $50 billion, reflecting the scale of its AI-driven expansion.
Peak AI Equipment Demand Seen In 2026
Advanced packaging equipment makers expect shipment volumes to remain elevated through at least the second quarter of next year, with many suppliers anticipating full-capacity operations throughout 2026.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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