Broadcom sees supply chain constraint, TSMC capacity a bottleneck, Reuters says

Broadcom (AVGO) is seeing supply chain constraints, including capacity limits at its manufacturing partner TSMC (TSM), due to the soaring demand for AI chips, Wen-Yee Lee of Reuters reports. “We are seeing that TSMC is hitting (production capacity) limits,” Natarajan Ramachandran, director of product marketing in Broadcom’s Physical Layer Products division, told reporters. “They will be increasing the capacity to 2027, but that has become a bottleneck, or that has kind of choked the supply chain in 2026.”