TSMC Capacity Poised to Drive 30% CPU Market Growth by 2028
TSM•Wolfe Research projects the total addressable CPU market will expand by roughly 30% by 2028, driven by agentic AI and orchestration computing requiring near 1:1 CPU-to-GPU ratios. Taiwan Semiconductor Manufacturing Company’s fab capacity advantage positions it to capture surging demand as ARM-based architectures aim for up to 75% share.
1. CPU Market Growth Forecast
Wolfe Research projects the total addressable CPU market will grow approximately 30% between 2023 and 2028, driven by surging demand for agentic AI and orchestration computing. The forecast underscores a new phase of CPU consumption beyond traditional enterprise and consumer workloads.
2. TSMC Fab Capacity and Competitive Edge
Taiwan Semiconductor Manufacturing Company’s access to advanced node capacity and wafer fabrication capabilities is poised to be a primary determinant of CPU vendor success. Capacity constraints at leading foundries could limit rivals lacking TSMC’s scale and technology leadership.
3. Rise of Orchestration CPUs
Orchestration CPUs, which coordinate GPU-heavy AI tasks, are expected to expand rapidly as platforms like Nvidia’s Rubin Ultra approach a 1:1 CPU-to-GPU ratio. This trend increases the need for high-volume, reliable processor supply from top-tier foundries.
4. ARM Architecture Adoption
ARM-based CPU designs are forecast to capture between 50% and 75% of emerging AI processor markets, potentially lifting ARM’s share of the broader CPU industry to about 45% by 2028. This shift is likely to drive significant wafer demand at TSMC fabs as energy-efficient, multi-threaded architectures gain traction.
