TSMC Reaches Capacity Limits Amid Surging Demand for AI Chips, Broadcom Executive Warns

TSMC stock is in focus after Broadcom executive Natarajan Ramachandran said the chipmaker is reaching production capacity limits due to surging demand for AI chips. Ramachandran noted bottlenecks in lasers and printed circuit boards, with PCBs emerging as an unexpected constraint. TSMC, which produces 90% of the world's most advanced chips, is accelerating expansion in Taiwan and Arizona to meet AI demand. Major TSMC customers include Nvidia and Apple.