Taiwan Semiconductor Manufacturing (TSM) stated in presentation materials released ahead of a technology symposium held on Thursday that the global semiconductor market size is expected to exceed $1.5 trillion by 2030, surpassing the previous forecast of $1 trillion.
TSM anticipates that artificial intelligence and high-performance computing will account for 55% of the $1.5 trillion market, followed by smartphones (20%) and automotive applications (10%).
The company noted that it has accelerated the pace of its capacity expansion for 2025 and 2026 and plans to construct its Fab Nine and advanced packaging facilities in 2026.
TSM is projected to significantly increase production capacity for its most advanced 2-nanometer chips and next-generation A16 chips, with a compound annual growth rate (CAGR) of 70% from 2026 to 2028.
The company stated that the CAGR for the capacity of its advanced packaging technology, CoWoS (Chip-on-Wafer-on-Substrate), is expected to exceed 80% between 2022 and 2027. CoWoS is a critical chip packaging technology widely used in artificial intelligence chips, including those from Nvidia (ticker: NVDA.O).
TSM indicated that demand for AI accelerator wafers is expected to grow 11-fold between 2022 and 2026.
The company reported that its first fabrication plant in Arizona, USA, is now operational. Equipment relocation for the second fab is scheduled for the second half of 2026. Construction of the third fab is underway. The fourth fab and its first advanced packaging facility at that site are expected to begin construction this year.
In Japan, the first fab has commenced mass production of 22-nanometer and 28-nanometer products. Due to strong market demand, plans for the second fab have been upgraded to a 3-nanometer process.
The fabrication plant in Germany is currently under construction and progressing according to schedule. It is planned to initially offer 28-nanometer and 22-nanometer processes, followed by 16-nanometer and 12-nanometer processes.
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