Taiwan Semiconductor Manufacturing Company (TSMC) is facing intense competition for its limited chip manufacturing capacity, driven by surging demand for artificial intelligence (AI) technology. Major tech firms like Nvidia, Apple, AMD, and Broadcom are engaged in what is described as an “extremely fierce” battle for space on TSMC’s factory lines. This high demand has made the person responsible for allocating TSMC’s wafer production “the most popular person on the planet,” reflecting the critical nature of securing manufacturing slots.
The scarcity of TSMC’s capacity threatens to slow down the expansion of AI infrastructure, as companies vie for access to advanced chip production. This situation presents an opportunity for Intel, as some customers seek alternative sources for chip manufacturing, potentially diversifying their supply chains away from TSMC.
CNBC attended a TSMC event to gain further insights into the challenges and dynamics of the semiconductor industry amid this intense competition.