TSMC Sees Global Chip Market Crossing $1.5 Trillion by 2030
TSMC, the leading contract chip manufacturer globally, anticipates that the international semiconductor market will surpass $1.5 trillion by 2030, exceeding its earlier estimate of $1 trillion, as stated in its presentation materials prior to a technology symposium this Thursday.
According to TSMC, AI and high-performance computing are projected to represent 55percent of the $1.5 trillion market, while smartphones are anticipated to make up 20percent and automotive applications are forecasted at 10percent.
TSMC announced that it has been increasing its capacity more rapidly in 2025 and 2026 and intends to construct nine stages of wafer fabs and advanced packaging plants in 2026.
The semiconductor manufacturer is expected to increase production for its cutting-edge 2-nanometer and upcoming A16 chips, with a compounded annual growth rate (CAGR) of 70percent from 2026 to 2028.
TSMC projected that the CAGR of capacity for its advanced packaging CoWoS (Chip on Wafer on Substrate) will exceed 80percent from 2022 to 2027. CoWoS is an essential chip packaging technology commonly utilized in AI chips, including those created by Nvidia.
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The firm indicated that the demand for AI accelerator wafers is expected to rise 11 times from 2022 to 2026.
The initial fab is currently in operation. The installation of tools for the second fab is scheduled for the latter part of 2026. The building of a third fab is in progress. Construction on a fourth fabrication plant and the site's initial advanced packaging facility is anticipated to commence this year.
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TSMC expects a 1.8 times year-over-year rise in Arizona production by 2026, achieving yields similar to those in Taiwan.
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The semiconductor company announced that it finished acquiring a second substantial piece of land in Arizona for upcoming growth.
The initial fab is presently in mass production for 22-nanometer and 28-nanometer items. The plans for the second fab have been enhanced to 3-nanometer due to high demand.