TSMC Admits Delays Due to Packaging Constraints, Seeks to Improve by 2024

Major chipmaker TSMC acknowledges a bottleneck in its production process. Mark Liu, TSMC's chairman, recently commented on the limited capacity of their advanced chip packaging method, which has led to delays in supplying AI chips. Due to unexpected demand, the company is currently only able to meet around 80% of customer requests.

TSMC produces a significant portion of AI chips, including those utilized by massive AI data centers. The current delay primarily stems from the advanced way these chips are assembled and packed.

However, there's good news on the horizon. TSMC is investing heavily in expanding its capacity, with plans to double it by the end of 2024. Additionally, a new $2.9 billion facility in Taiwan is in the works, showcasing the company's dedication to meeting global demand.

Other tech giants, like Intel and Samsung, are also racing to enhance their chip packaging capacities, forecasting the importance of this sector in the coming years.