Taiwan Semiconductor Manufacturing (TSM) anticipates that by 2030, the global chip industry will advance towards a remarkable market size of $1.5 trillion, highlighting the immense scale the AI-driven semiconductor boom is expected to achieve throughout the remainder of this decade.

This projection, reiterated by TSM following discussions at a technology symposium in the United States this week, reflects the company's growing confidence that artificial intelligence and high-performance computing will dominate semiconductor demand in the next era. TSM stated that by 2030, AI and HPC alone are expected to account for approximately 55% of the projected $1.5 trillion market, significantly surpassing the 20% share for smartphones and the 10% share for automotive chips.

The company is already racing to meet this demand. TSM indicated plans to accelerate capacity expansion in 2025 and 2026, including the addition of nine new wafer fab and advanced packaging facility phases next year. Demand for its most advanced technologies, including 2-nanometer and A16 chips, is projected to grow at an annualized rate of 70% between 2026 and 2028.

One of the primary bottlenecks remains advanced packaging, particularly the CoWoS technology used to connect Nvidia's AI hardware with high-bandwidth memory systems. TSM noted that CoWoS capacity is expected to grow at a compound annual growth rate exceeding 80% from 2022 to 2027, while AI wafer demand itself is forecast to surge 11-fold from 2022 to 2026.

This expansion is occurring globally. As nations and companies compete to relocate semiconductor supply chains closer to home, TSM continues to rapidly advance construction projects in Arizona, Japan, and Germany. In Arizona alone, the company expects production output to increase by 1.8 times year-over-year by 2026, with yields comparable to its facilities in Taiwan.