TSMC (TSM) lifts 2030 chip market forecast to $1.5 trillion on AI demand

TSMC (TSM) 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. Capacity for its 2-nanometer and next-generation A16 chips is projected to grow at a 70% compound annual rate from 2026 to 2028. TSMC also forecast more than 80% compound annual growth in CoWoS advanced packaging capacity from 2022 to 2027, a technology used in AI chips including Nvidia designs. AI accelerator wafer demand is expected to rise 11-fold from 2022 to 2026. The company cited ongoing fab expansions in Arizona, Japan and Germany.