Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:TSM) is one of the 10 High Growth Mega Cap Stocks to Buy and Hold for Next 10 Years. Reuters reported on March 24 that, as per an executive at Broadcom, the company’s manufacturing partner, Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:TSM), is operating near full capacity as demand for AI chips continues to surge. The executive added that the broader industry is also facing supply chain constraints. He pointed out shortages in areas such as printed circuit boards and lasers, which have emerged as unexpected bottlenecks and are causing delays. To address these constraints, many customers are signing long-term agreements for 3-4 years. Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:TSM) has also said its customer planning timelines are now 2-3 years in advance due to tight capacity conditions.

Director of product marketing in Broadcom’s Physical Layer Products division, Natarajan Ramachandran, commented:

"We are seeing that TSMC is hitting (production capacity) limits. They will be ​increasing the capacity to 2027, but that has become a bottleneck, ⁠or that has kind of choked the supply chain in 2026."

According to the CEO C.C. Wei, the company is working hard to expand the capacity in Arizona and Taiwan to meet demand. Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:TSM), which produces around 90% of the world’s most advanced chips, counts Nvidia and Apple among its key customers. Meanwhile, Samsung is also shifting towards three- to five-year long-term contracts to better manage industry cycles.

Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:TSM) is the world’s largest semiconductor foundry and is engaged in the manufacturing and designing of semiconductor chips. These chips are used by companies across several end markets, including personal computers and peripheral products, consumer electronics, wired and wireless communications systems, and automotive and industrial equipment.

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