TSMC Raises 2030 Chip Market Forecast to $1.5 Trillion as AI Demand Accelerates

TSMC said May 14, 2026, it expects the global semiconductor market to exceed $1.5 trillion by 2030, up from its prior $1 trillion forecast, as artificial intelligence and high-performance computing drive demand. The company said AI and high-performance computing will account for 55% of the projected market, followed by smartphones at 20% and automotive applications at 10%. TSMC plans to accelerate capacity expansion in 2025 and 2026, including nine phases of wafer fabs and advanced packaging facilities in 2026. TSMC expects capacity for its 2-nanometer and A16 chips to grow at a 70% compound annual rate from 2026 to 2028. CoWoS advanced packaging capacity, used in AI chips including Nvidia designs, is forecast to rise at more than an 80% CAGR from 2022 to 2027. The company projects AI accelerator wafer demand will increase 11-fold from 2022 to 2026.