TSMC Predicts Global Chip Market Will Reach $1.5 Trillion by 2030

TSMC, the world’s largest contract chipmaker, has forecast that the global semiconductor market will exceed $1.5 trillion by 2030, driven largely by explosive growth in artificial intelligence and high-performance computing technologies.

The new projection marks a sharp increase from TSMC’s earlier estimate of $1 trillion and reflects the rapidly expanding global demand for AI chips used in data centres, cloud computing, autonomous systems, and advanced consumer technologies.

According to presentation materials released ahead of the company’s annual technology symposium in Taiwan, AI and high-performance computing are expected to account for about 55% of the projected semiconductor market by 2030. Smartphones are expected to contribute 20%, while automotive technologies are projected to make up around 10%.

TSMC said demand for AI accelerator chips is rising at an unprecedented pace, with wafer demand for such processors expected to increase elevenfold between 2022 and 2026. The company also forecast more than 80% compound annual growth in capacity for its advanced CoWoS chip packaging technology, which is widely used in AI processors developed by companies like Nvidia.

To meet surging demand, TSMC announced plans to aggressively expand production capacity. The company said it intends to build nine additional wafer fabrication and advanced packaging facilities in 2026 alone, while rapidly scaling up production of its advanced 2-nanometre and next-generation A16 chips.

The chipmaker is also accelerating global expansion projects in the United States, Japan, and Germany. In Arizona, TSMC said its first plant is already operational, with construction and expansion work continuing on several additional facilities. Similar expansion efforts are underway in Japan and Europe to reduce supply-chain risks and meet growing international demand for advanced semiconductors.

Industry analysts say the latest forecast highlights how AI has become the primary engine of growth in the global tech sector, reshaping investment priorities and boosting demand for advanced semiconductor manufacturing worldwide.