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Broadcom identifies PCB and laser production as key supply chain bottlenecks
Tuesday, March 24, 2026 at 10:56 AM
Broadcom has identified specific bottlenecks in the supply chain for high-speed networking and AI interconnect components, specifically citing constraints in PCB manufacturing and laser production required for optical transceivers.
Context
On March 24, 2026, Broadcom executives warned that the surging demand for AI infrastructure has reached a critical capacity ceiling, identifying TSMC manufacturing limits as a primary bottleneck for 2026. While Broadcom maintains line of sight to over $100 billion in AI-related chip revenue by 2027, the company noted that supply chain 'choke points' have expanded beyond wafer fabrication to include printed circuit boards (PCBs) and laser production components.
To mitigate these constraints, Broadcom has shifted toward long-term supply agreements spanning three to five years to secure essential materials. This strategic move comes as TSMC's 2nm process capacity is reportedly fully booked through 2028. Despite these logistical pressures, Broadcom reported a strong Q1 2026 performance, driven by its Tomahawk and Jericho switch families, which remain central to scaling the next generation of massive AI clusters.
Sources (9)
Broadcom flags supply constraints, says TSMC capacity a bottleneck | ReutersBroadcom says Tomahawk switches are driving market share as AI networking demand acceleratesEarnings call transcript: Broadcom Q1 2026 earnings beat expectations By Investing.comBroadcom flags supply constraints, says TSMC capacity a bottleneckBroadcom Reportedly Flags TSMC Capacity as 2026 Bottleneck ...GB200 Hardware Architecture - Component Supply Chain & BOMBroadcom Stretches Switching Across Datacenters With Jericho 4AI Arms Race Hits Capacity Ceiling: Broadcom Warns of TSMC Supply Chain Bottlenecks, 2nm Capacity Booked Through 2028 — BigGo Finance
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