TSMC hard-pressed to meet surging AI chip demand, The Information says

Nvidia (NVDA) is not the only U.S. tech executive making requests to TSMC (TSM) for more chips. In recent months, Broadcom (AVGO), which places manufacturing orders with TSMC for Google’s (GOOGL) tensor processing units, repeatedly asked TSMC for additional production capacity, according to two people with direct knowledge of the discussions. TSMC told both companies it could not give them as much capacity as they wanted, the two people said, The Information’s Qianer Liu reports. A recently reported expansion of TSMC’s production facilities in Arizona won’t do much to help in the near term, as the new facilities won’t come online for years. TSMC’s response highlights how the AI boom has overwhelmed the production capacity of the world’s largest chipmaker, the author notes. TSMC is responsible for making 90% of the world’s most advanced chips, including those designed by Apple (AAPL), Nvidia and Google.