TSMC's advanced process capacity is reportedly sold out through 2028 due to a surge in demand for AI chips

Summary

Due to an explosion in demand for AI semiconductors, TSMC's advanced manufacturing capacity, particularly its 2nm and 3nm processes, is reportedly fully booked through 2028 + 2. This severe capacity crunch, confirmed by major customers like Broadcom TechNews+ 2, is forcing tech giants to seek alternatives, with Samsung Electronics seen as the only major viable option . The situation is so tight that even top customer Nvidia is reportedly altering future chip designs due to the shortage Tip Ranks+ 2. In response to the overwhelming demand, TSMC is expected to raise its advanced process prices for four consecutive years starting in 2026 HKEJ+ 2.

Impact Analysis

This isn't just another cycle—TSMC's capacity being sold out through 2028 is a structural signal of a massive supply/demand chasm in AI + 2. The interesting part isn't that TSMC has pricing power; that's obvious, and they're already set for years of hikes HKEJ+ 2. The real story is the desperation of the 'have-nots.'

We're seeing major customers like Broadcom and Nvidia practically sounding the alarm; Nvidia is even being forced to alter future chip designs because they can't get enough leading-edge wafers TechNews+ 3. This creates a massive spillover effect. The market is focused on TSMC's dominance, but they're missing the kingmaker dynamic this creates. Samsung is explicitly named the only viable alternative for the overflow . This is the best opportunity they've ever had to prove their foundry's yields and win high-volume, leading-edge customers. The trade isn't just being long TSMC; it's watching for any sign that Samsung is successfully capturing this historic overflow.