Taiwan Semiconductor (TSM) Going Strong Amid Tight Capacity Conditions

5 days ago 4

Jabran Kundi

Sat, March 28, 2026 astatine 10:18 AM CDT 2 min read

Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:TSM) is 1 of the 10 High Growth Mega Cap Stocks to Buy and Hold for Next 10 Years. Reuters reported connected March 24 that, arsenic per an enforcement astatine Broadcom, the company’s manufacturing partner, Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:TSM), is operating adjacent afloat capableness arsenic request for AI chips continues to surge. The enforcement added that the broader manufacture is besides facing proviso concatenation constraints. He pointed retired shortages successful areas specified arsenic printed circuit boards and lasers, which person emerged arsenic unexpected bottlenecks and are causing delays. To code these constraints, galore customers are signing semipermanent agreements for 3-4 years. Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:TSM) has besides said its lawsuit readying timelines are present 2-3 years successful beforehand owed to choky capableness conditions.

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Director of merchandise selling successful Broadcom’s Physical Layer Products division, Natarajan Ramachandran, commented:

"We are seeing that TSMC is hitting (production capacity) limits. They volition beryllium increasing the capableness to 2027, but that has go a bottleneck, ⁠or that has benignant of choked the proviso concatenation successful 2026."

According to the CEO C.C. Wei, the institution is moving hard to grow the capableness successful Arizona and Taiwan to conscionable demand. Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:TSM), which produces astir 90% of the world’s astir precocious chips, counts Nvidia and Apple among its cardinal customers. Meanwhile, Samsung is besides shifting towards three- to five-year semipermanent contracts to amended negociate manufacture cycles.

Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:TSM) is the world’s largest semiconductor foundry and is engaged successful the manufacturing and designing of semiconductor chips. These chips are utilized by companies crossed respective extremity markets, including idiosyncratic computers and peripheral products, user electronics, wired and wireless communications systems, and automotive and concern equipment.

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READ NEXT: 8 Best American Stocks to Buy and Hold successful 2026 and 12 Best Mid Cap AI Stocks to Buy According to Hedge Funds.

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