TSMC Will Struggle to Meet AI Demand for Years, Analysts Say

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Jan. 19, 2026 – 

By Alan Patterson, EE Times

TSMC will struggle to keep pace with AI chip demand despite budgeting a record $52-$56 billion for capacity expenditures this year. The company’s capex will soar as much as 37% from 2025, and it hinted that over the next three years, it will continue to ramp up investment.

“We raise our forecast for revenue growth from AI accelerators to approach a mid- to high-50 percentage CAGR for the five-year period from 2024 to 2029,” TSMC CEO C.C. Wei said in the company’s earnings call on Wednesday. TSMC expects its revenue growth to approach 25% CAGR in U.S. dollar terms for a five-year period starting from 2024. In past years, TSMC targeted a CAGR of about 20%.

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