--- title: "TSMC says global chip market to hit $1.5 trillion by 2030 as AI drives growth" type: "News" locale: "en" url: "https://longbridge.com/en/news/286345902.md" description: "TSMC forecasts the global semiconductor market will exceed $1.5 trillion by 2030, driven by AI and high-performance computing, which will account for 55% of the market. The company plans to expand its capacity significantly, with a CAGR of 70% for its advanced chips from 2026 to 2028 and over 80% for its advanced packaging technology. TSMC is also expanding its global footprint with new fabs in Arizona, Japan, and Germany to meet rising demand, particularly for AI chips." datetime: "2026-05-14T02:06:00.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/286345902.md) - [en](https://longbridge.com/en/news/286345902.md) - [zh-HK](https://longbridge.com/zh-HK/news/286345902.md) --- # TSMC says global chip market to hit $1.5 trillion by 2030 as AI drives growth HSINCHU, Taiwan, May 14 (Reuters) - TSMC, the world's largest contract chipmaker, expects the global semiconductor market to exceed $1.5 trillion by 2030, topping its previous forecast of $1 trillion, according to its presentation materials ahead of a tech symposium on Thursday. Here are the ​details: \-- AI and high-performance computing are expected to account for 55% of the $1.5 trillion market, followed by smartphones with 20%, and automotive applications with 10%, according to TSMC. \-- TSMC said it has been expanding capacity at a faster pace in 2025 and 2026 and plans to build nine phases of wafer fabs and advanced packaging facilities in 2026. \-- The chipmaker is projected to ramp up capacity for its most advanced 2-nanometer and next generation A16 chips, with a compounded annual growth rate (CAGR) of 70% from 2026 to 2028. \-- TSMC said CAGR of capacity for its advanced packaging CoWoS (Chip on Wafer on Substrate) is forecast at more than 80% from 2022 to 2027. CoWoS is a key chip packaging technology widely used in AI chips including those designed by Nvidia. \-- The company said AI accelerator wafer demand is projected to increase 11-fold from 2022 to 2026. TSMC'S GLOBAL FOOTPRINT \-- Arizona: The first fab is already in production. Tool move-in for the second fab is planned for the second half of 2026. Construction of a third fab is underway. Work on a fourth fab and the site's first advanced packaging facility is expected to begin this year. \-- TSMC anticipates a 1.8-fold year-on-year increase in Arizona output by 2026, with yields comparable to those in Taiwan. \-- The chipmaker said it completed the purchase of a second large parcel of land in Arizona for future expansion. \-- Japan: The first fab is currently in volume production for 22-nanometer and 28-nanometer products. Plans for the second fab have been upgraded to 3-nanometer in response to strong demand. \-- Germany: The fab is currently under construction and progressing as scheduled. It plans to provide 28-nanometer and 22-nanometer technologies, followed by 16-nanometer and 12-nanometer technologies. (Reporting by Wen-Yee Lee; Editing by Kate Mayberry) ### Related Stocks - [SOXL.US](https://longbridge.com/en/quote/SOXL.US.md) - [SOXX.US](https://longbridge.com/en/quote/SOXX.US.md) - [SMH.US](https://longbridge.com/en/quote/SMH.US.md) - [TSMG.US](https://longbridge.com/en/quote/TSMG.US.md) - [XSD.US](https://longbridge.com/en/quote/XSD.US.md) - [TSMU.US](https://longbridge.com/en/quote/TSMU.US.md) - [PSI.US](https://longbridge.com/en/quote/PSI.US.md) - [TSMX.US](https://longbridge.com/en/quote/TSMX.US.md) - [TSM.US](https://longbridge.com/en/quote/TSM.US.md) - [NVDA.US](https://longbridge.com/en/quote/NVDA.US.md) - [NVD.DE](https://longbridge.com/en/quote/NVD.DE.md) ## Related News & Research - [Two Creeks Capital Boosts Taiwan Semiconductor Stake by 86K](https://longbridge.com/en/news/286659331.md) - [Hotchkis & Wiley trims Taiwan Semiconductor stake by 4,070 shares](https://longbridge.com/en/news/286659881.md) - [Weitz Investment Management boosts TSMC stake with 20,000 shares](https://longbridge.com/en/news/286630768.md) - [TSMC approves $20B injection to expand Arizona Fab 21](https://longbridge.com/en/news/286306368.md) - [Taiwan Semiconductor Manufacturing Company Ltd. $TSM Stock Position Lifted by HighTower Advisors LLC](https://longbridge.com/en/news/286875739.md)