March 26, 2026 /SemiMedia/ — Broadcom said rising demand for artificial intelligence chips is putting pressure on semiconductor production, with limits at foundries and other parts of the supply chain starting to affect deliveries.

Natarajan Ramachandran, a marketing director at Broadcom, said on March 24 that manufacturing capacity at Taiwan Semiconductor Manufacturing Co. is now running close to full use, making it a key constraint for the industry. He noted that what once seemed like ample capacity is now clearly limited.

TSMC has also indicated that strong investment in AI infrastructure is taking up a large share of its advanced nodes, keeping utilization high. While expansion plans are in place, new capacity is not expected to ease supply conditions until closer to 2027, leaving tight conditions through 2026.

The pressure is not limited to wafer production. Ramachandran said supply limits are spreading to other parts of the ecosystem, including optical and laser components.

Printed circuit boards have also emerged as a bottleneck. Suppliers in Taiwan and mainland China are facing high utilization rates, leading to longer lead times and slower system-level deliveries.

In response, customers are increasingly signing long-term agreements with suppliers to secure capacity for the next three to four years.