TSMC told investors at its annual technology symposium on May 15, 2026 that the global semiconductor market will exceed $1.5 trillion by 2030, a 50% jump from its previous $1 trillion forecast. AI and high-performance computing will account for 55% of that market, with smartphones at 20% and automotive at 10%.
To meet demand, the world's largest contract chipmaker projects its 2-nanometer and A16 capacity will grow at a 70% CAGR from 2026 to 2028, while CoWoS advanced packaging capacity expands at over 80% CAGR from 2022 to 2027. AI accelerator wafer demand alone is projected to grow 11-fold between 2022 and 2026.
TSMC plans nine new wafer fab and packaging facility phases in 2026, including a 1.8x output increase at its Arizona site, where four fabs and a packaging plant are now planned. A second fab in Japan is being upgraded to 3-nanometer, and a new fab in Germany will produce 12 to 28-nanometer chips.