TSMC Can’t Keep Up With AI Chip Demand, and Apple Could Be Affected

Taiwan Semiconductor Manufacturing Company (TSMC), Apple's most important chip supplier, has warned that global demand for advanced AI chips will continue to exceed supply for years. While the company is expanding production capacity, the latest comments from CEO C.C. Wei raise questions about how ongoing shortages could affect Apple's future products and innovation roadmap.



Speaking at TSMC's annual shareholders' meeting, Wei said customer demand remains far ahead of available production capacity.




“It will be a long time before we can meet customer demand,” said TSMC CEO C.C. Wei.




Apple relies on TSMC to manufacture its custom silicon chips that power the iPhone, iPad, Mac, and other devices. Although Apple remains one of TSMC's largest customers, it now competes for manufacturing capacity with AI giants such as Nvidia, AMD, and Broadcom, all of which are racing to secure more advanced chips.



TSMC's warning does not suggest immediate product shortages for Apple devices, but it highlights growing pressure on the semiconductor supply chain. As AI becomes a bigger part of Apple's strategy, especially across iPhone, Mac, and future AI-focused services, access to advanced chip manufacturing will become even more important.



Wei also stressed that TSMC plans to maintain stability instead of introducing aggressive price increases that have affected other parts of the semiconductor industry. That approach helps customers like Apple manage long-term product planning while demand continues to rise.



A Long-Term Challenge



TSMC is investing heavily in new manufacturing facilities, including major expansion projects in Arizona. However, even with billions of dollars committed to new plants, the company expects demand to remain ahead of supply.



The warning shows that chip manufacturing capacity remains one of the biggest challenges facing the technology industry. For Apple, securing access to TSMC's most advanced production lines will remain critical as the company develops more powerful chips and expands its AI ambitions in the years ahead.