Broadcom Warns TSMC Capacity Maxed; Tesla Plans $25B Terafab to Ease AI Chip Shortage
Broadcom warns TSMC capacity is fully booked, signaling an AI chip supply bottleneck after capacity reached limits. Tesla and SpaceX’s $25 billion Terafab project in Texas plans 100,000 wafer starts monthly, scaling toward one million to produce billions of custom AI and memory chips annually.
1. Broadcom Flags TSMC Capacity Constraints
Broadcom has signaled that Taiwan Semiconductor’s fabrication capacity is fully booked, unable to absorb additional wafer orders. This warning highlights mounting pressure on TSMC’s production lines as AI and networking demands surge, potentially forcing OEMs to seek alternative suppliers or invest in in-house manufacturing.
2. Tesla and SpaceX Launch Terafab Initiative
Tesla and SpaceX unveiled plans for a $25 billion Terafab complex at Giga Texas, designed to address supplier constraints by producing inference and satellite chips. The dual fabs will begin at 100,000 wafer starts per month and target one million, aiming for annual output of 100–200 billion custom AI and memory chips to serve automotive, robotics and orbital data centers.