TSMC predicts that the global chip market will reach $1.5 trillion by 2030 because of AI

"TSMC predicted that the global semiconductor market will reach $1.5+ trillion by 2030 - for context, the previous forecast was for $1.0 trillion. And it's clear that demand for AI silicon is driving the massive increase in sales - according to TSMC's breakdown, 55% of that $1.5 trillion market will come from AI (and other high-performance computing), while smartphones account for only 20% and cars for only 10%."

"We won't even have to wait until 2030 to see the changes in the market - the company forecasts that demand for AI accelerator wafers this year will increase 11x compared to 2022. That's only four years of calendar time, yet AI went from a curiosity to something every business executive talks about."

"Naturally, the company is making hay while the sun shines - it is building out new production facilities faster than before. And not just in Taiwan, either. TSMC has a plant in Arizona and got a $6.6 billion grant from the US a couple of years ago. That first plant is already producing chips - not the cutting edge silicon (TSMC keeps that in Taiwan), but it is making 4nm chips and will move to 3nm and 2nm in time."

"There's a second fab that's almost complete - TSMC will bring in the expensive and delicate machines that make the chips later this year. A third fab is under construction with a fourth coming soon, plus an advanced packaging facility. The company is even looking to buy more land for future expansions. According to TSMC, the Arizona fab will see a 1.8x year-on-year increase in production this year with yields similar to what fabs in Taiwan are seeing."

The global semiconductor market is forecast to grow to $1.5+ trillion by 2030, up from a previous $1.0 trillion forecast. AI and other high-performance computing are expected to account for 55% of that market, while smartphones account for 20% and cars for 10%. Demand for AI accelerator wafers is projected to rise 11x this year compared with 2022. TSMC is expanding production capacity faster than before, including new facilities outside Taiwan. In Arizona, a $6.6 billion US-supported plant is already producing 4nm chips and is expected to move to 3nm and 2nm. Additional Arizona fabs and advanced packaging capacity are planned, with production growth and yields comparable to Taiwan. TSMC also operates a Japan fab for older nodes used in automotive and low-power components, with plans to begin 3nm production at a second Japan site.

Read at GSMArena.com