AI is pushing the global chip market: Value at 1500 billion. dollars

More than half, or 55 percent of that market worth 1,500 billion dollars, is the artificial intelligence and high-performance computing sector, predict TSMC’s experts. The smartphone sector will have a share of 20 percent, and the automotive sector a share of 10 percent, the company says in the forecast.

Taiwanese producer&dstro;ač announced that it increased capacities in 2025 and 2026 at an accelerated pace and that in the current year it intends to build nine phases of semiconductor wafer factories and facilities for advanced assembly of chips.

According to forecasts, TSMC will significantly increase capacity for the most advanced 2-nanometer chips and A16 chips of the new generation, with an average annual growth rate of 70 percent in the period from 2026 to 2028.

The average annual growth rate of capacity for the advanced assembly of CoWoS chips should be more than 80 percent in the period from 2022 to 2027, TSMC predicts. CoWoS is a key chip assembly technology widely used in the production of artificial intelligence chips, including those designed by Nvidia.

The demand for artificial intelligence processors in board size should grow 11 times in the period from 2022 to 2026, according to the company’s forecasts.

In addition to Taiwan, TSMC has facilities all over the world, including two factories in the federal state of Arizona in the USA, where it plans further expansion. In Japan, it currently has one facility with the production of 22 and 28 nanometer chips, and it is planning a second one where it will produce advanced 3-nanometer chips thanks to strong demand. In Germany, it is currently building a factory that is progressing according to plan, and there it intends to produce chips of 22 and 28 nanometers and 16 and 11 nanometers at a later stage.