Broadcom said the production capacity of Taiwan's TSMC, the world's largest foundry (semiconductor contract manufacturing) corporations, has reached its limit. With TSMC's production capacity hitting the ceiling, attention is turning to whether the foundry division of rival Samsung Electronics will benefit.
On the 24th (local time), Reuters reported that Natarajan Ramachandran, Broadcom's marketing head for the physical layer institutional sector, met with local reporters and said, "TSMC appears to be reaching the limits of its production capacity," adding, "Until just a few years ago, we would have described TSMC's capacity as infinite."
Broadcom is a powerhouse in the application-specific integrated circuit (ASIC) market. It supports Google, Meta, Microsoft and Amazon in custom-designing AI chips tailored to their own artificial intelligence (AI) models. As the AI industry grows rapidly, demand to work with Broadcom has surged, and most of the chips are mass-produced through TSMC.
As TSMC holds an overwhelming edge over competitors in advanced processes at 3-nanometer and below, demand for AI Semiconductor manufacturing is concentrating at TSMC. Rivals Samsung Electronics and Intel have struggled to win orders from global big tech corporations due to weak Production yield.
Some analysts say Samsung Electronics' foundry division could benefit from TSMC's limited production capacity. A semiconductor industry official said, "Samsung Electronics' foundry division has stabilized Production yield in advanced processes at 3-nanometer and below to a level that can secure customers," adding, "Given that it has secured customers such as Tesla, if it targets big tech demand seeking to diversify manufacturing concentrated at TSMC, winning orders is not impossible."