The world’s leading contract semiconductor manufacturer has significantly increased its forecast for the global chip industry, now predicting the market will reach $1.5 trillion by 2030, according to presentation materials released ahead of a technology symposium on Thursday.
TSMC’s new projection surpasses its earlier estimate of $1 trillion for the same timeframe, with artificial intelligence serving as the primary catalyst for this dramatic growth.
The company’s breakdown shows artificial intelligence and high-performance computing will dominate the market, representing 55% of the $1.5 trillion total. Mobile devices are anticipated to capture 20% of the market share, while automotive applications will account for 10%.
To meet this surging demand, TSMC announced plans to accelerate its expansion timeline for 2025 and 2026, with nine phases of wafer manufacturing facilities and advanced packaging operations scheduled for completion by 2026.
The semiconductor giant expects to dramatically increase production capacity for its cutting-edge 2-nanometer and next-generation A16 processors, targeting a compound annual growth rate of 70% between 2026 and 2028.
TSMC’s advanced packaging technology, known as CoWoS (Chip on Wafer on Substrate), is projected to grow at a compound annual rate exceeding 80% from 2022 through 2027. This packaging method is essential for AI processors, including those created by Nvidia.
The company forecasts that demand for AI accelerator wafers will multiply eleven times from 2022 to 2026.
International Expansion Plans
In Arizona, TSMC’s first manufacturing facility is already operational. The company plans to begin equipment installation for its second facility in the latter half of 2026, while construction continues on a third plant. Work on a fourth facility and the location’s first advanced packaging operation is set to commence this year.
TSMC projects Arizona production will increase 1.8 times year-over-year by 2026, achieving quality levels matching those at its Taiwan operations. The company has also acquired additional land in Arizona for future development.
In Japan, the first facility is currently producing 22-nanometer and 28-nanometer products at full capacity. Plans for the second Japanese plant have been enhanced to include 3-nanometer technology due to strong market demand.
Construction of TSMC’s German facility remains on schedule, with plans to manufacture 28-nanometer and 22-nanometer technologies initially, followed by 16-nanometer and 12-nanometer capabilities.
