Surging AI Demand: TSMC Ramps Up Capacity, Targets Silicon Photonics Mass Production by 2025
TSMC EVP Kevin Zhang stated that the company is aggressively expanding global capacity to meet robust AI demand. He highlighted advanced packaging as a key pillar for AI and confirmed that silicon photonics technology is scheduled for mass production this year and next.
📋 Article Processing Timeline
- 📰 Published: June 1, 2026 at 11:34
- 🔍 Collected: June 1, 2026 at 11:52 (18 min after Published)
- 🤖 AI Analyzed: June 1, 2026 at 11:57 (5 min after Collected)
Central News Agency (CNA) report by Chang Chien-chung, Taipei. TSMC Executive Vice President and Co-COO Kevin Zhang stated on the 1st that AI demand is extremely strong, and TSMC is making every effort to expand its production capacity. Advanced packaging has been a highly sought-after technology for TSMC in recent years and serves as a critical technical pillar for the AI industry. TSMC expects to have a strong market position in silicon photonics, with mass production scheduled for this year and next.
Zhang attended a pre-event for NVIDIA's GTC Taipei keynote, noting that technological leadership, manufacturing advantages, and customer trust are TSMC's three competitive pillars. Since its founding, TSMC has prioritized customer trust.
Zhang said that under the extreme demand for AI, the most important task is to aggressively expand capacity. TSMC is currently expanding production in Taiwan, the United States, Japan, and Europe, utilizing all available resources.
He indicated that after expanding capacity, TSMC uses its market research department to analyze potential demand from customers and their end-users. With AI demand being so robust, he expects a healthy balance to be maintained.
Regarding how to balance capacity among customers, Zhang said it requires wise judgment from Chairman and CEO C.C. Wei. The company maintains close communication and cooperation with all clients. While fully supporting key customers like NVIDIA, they also make appropriate adjustments for smaller clients, discussing internally almost weekly or monthly how to satisfy the most customers in the most reasonable way.
Regarding future technology, Zhang stated that TSMC places great importance on R&D. As Moore's Law evolves, the primary goal is to keep it alive, with TSMC continuously introducing 7nm, 5nm, 3nm, and 2nm processes.
Zhang noted that TSMC's strength lies in its close cooperation with customers, allowing them to deeply understand advanced technology requirements. By working closely with global design firms like NVIDIA, they can grasp key technical points and invest significant resources into development.
He mentioned that advanced packaging is a visionary technology they began investing in 15 to 17 years ago, and it is now flourishing as a key support for the AI industry.
Zhang added that TSMC expects a strong market for silicon photonics, with mass production slated for this year and next. Regarding chip stacking, the current focus is logic-on-logic, but it will evolve into memory-on-logic technology in the future.
Zhang concluded that TSMC has extensive cooperation with Delta Electronics to understand system-level heat dissipation and power supply needs. Taiwan's complete industrial supply chain is instrumental in helping TSMC plan its future technology roadmap.
Zhang attended a pre-event for NVIDIA's GTC Taipei keynote, noting that technological leadership, manufacturing advantages, and customer trust are TSMC's three competitive pillars. Since its founding, TSMC has prioritized customer trust.
Zhang said that under the extreme demand for AI, the most important task is to aggressively expand capacity. TSMC is currently expanding production in Taiwan, the United States, Japan, and Europe, utilizing all available resources.
He indicated that after expanding capacity, TSMC uses its market research department to analyze potential demand from customers and their end-users. With AI demand being so robust, he expects a healthy balance to be maintained.
Regarding how to balance capacity among customers, Zhang said it requires wise judgment from Chairman and CEO C.C. Wei. The company maintains close communication and cooperation with all clients. While fully supporting key customers like NVIDIA, they also make appropriate adjustments for smaller clients, discussing internally almost weekly or monthly how to satisfy the most customers in the most reasonable way.
Regarding future technology, Zhang stated that TSMC places great importance on R&D. As Moore's Law evolves, the primary goal is to keep it alive, with TSMC continuously introducing 7nm, 5nm, 3nm, and 2nm processes.
Zhang noted that TSMC's strength lies in its close cooperation with customers, allowing them to deeply understand advanced technology requirements. By working closely with global design firms like NVIDIA, they can grasp key technical points and invest significant resources into development.
He mentioned that advanced packaging is a visionary technology they began investing in 15 to 17 years ago, and it is now flourishing as a key support for the AI industry.
Zhang added that TSMC expects a strong market for silicon photonics, with mass production slated for this year and next. Regarding chip stacking, the current focus is logic-on-logic, but it will evolve into memory-on-logic technology in the future.
Zhang concluded that TSMC has extensive cooperation with Delta Electronics to understand system-level heat dissipation and power supply needs. Taiwan's complete industrial supply chain is instrumental in helping TSMC plan its future technology roadmap.
FAQ
What is TSMC's focus for future technology development?
TSMC is committed to extending Moore's Law through continuous process advancements (7nm to 2nm) and prioritizing the mass production of advanced packaging and silicon photonics.