According to Deutsche Bank's most recent report, the global semiconductor market is grappling with an increasingly severe supply - demand imbalance, especially within the advanced process foundry segment. Analysts highlight that although TSMC's market share in the advanced process foundry market is projected to drop from 95% to 90%, it still maintains an unassailable lead in the industry.

The explosive growth in hardware demand, spurred by generative AI, has left TSMC's 3nm process capacity struggling to keep up with the requirements of its major fabless customers. Order backlogs have stretched all the way to 2027. To tackle these capacity limitations, TSMC intends to substantially ramp up its capital expenditures and steer customers towards the 2nm GAA process.

While Samsung and Intel are regarded as possible alternatives, TSMC's technological superiority and extensive customer network continue to give it a competitive edge.