During TSMC's earnings briefing for the third quarter of 2025, Chairman C.C. Wei underscored that the demand driven by artificial intelligence (AI) has dramatically outstripped initial forecasts. He pointed out that there is a critical shortage in the current production capacities for advanced semiconductor manufacturing processes. According to Wei, when considering the product development roadmaps and growth projections of TSMC's major clients, the existing capacity for advanced processes is facing a threefold shortfall. This has led to a highly strained supply situation, which he succinctly described as "insufficient, insufficient, and still insufficient."

Financial reports indicate that TSMC's revenue for the third quarter reached NT$989.92 billion, with advanced processes (7nm and below) contributing a substantial 74% of the total revenue. These advanced processes have emerged as the primary engine propelling the company's performance growth. The explosive demand for AI applications stands as the key driver behind the escalating requirements for advanced semiconductor processes. TSMC projects that the demand for AI chips will sustain a compound annual growth rate (CAGR) exceeding 40% in the years ahead.

To tackle this formidable challenge, TSMC is taking proactive measures to expand its production capacity. The company is retrofitting older production lines to make them suitable for advanced processes, fostering cross-site collaboration to optimize resource utilization, and planning the construction of new production lines in Arizona, USA.