Rumor
TSMC prioritizes AI chip orders as 3nm capacity constraints drive designers toward Samsung
Monday, March 23, 2026 at 02:44 AM
TSMC is currently facing severe capacity constraints for its 3nm and other advanced process nodes due to a surge in demand. The foundry is reportedly prioritizing AI-related orders from major clients like Nvidia, AMD, Broadcom, and Marvell, followed by long-term partners such as Apple and MediaTek. This backlog is prompting some chip designers to consider shifting production to Samsung Foundry, while others are signing long-term agreements to secure future capacity.
Context
The global semiconductor supply chain is facing a structural shift as Nvidia has reportedly overtaken Apple as TSMC's largest revenue contributor in 2025, accounting for approximately 19% of total sales. This surge in AI demand has pushed TSMC's 3nm capacity to its limits, leading the foundry to prioritize high-margin AI orders from Nvidia, AMD, Broadcom, and Marvell. Consequently, long-term partners like Apple and MediaTek are seeing their traditional "priority shipping" status challenged, with some firms now mulling a move to Samsung Foundry to secure advanced node capacity.
To manage this overwhelming demand, TSMC is projected to increase its 2026 capital expenditure to a record $52-56 billion, focusing heavily on expanding both advanced logic processes and CoWoS packaging. As 3nm remains fully booked and 2nm tape-outs are already tracking at 1.5x the rate of the previous generation, chip designers are increasingly forced into signing restrictive long-term agreements. This capacity crunch signals a potential opening for Samsung, despite its reported 50% yield gap compared to TSMC's 90% at the 3nm node.
Sources (12)
Accelerating Multi-Die Innovation: How Samsung and Synopsys Are Shaping Chip Design | Samsung Semiconductor GlobalTSMC Holds 3nm Volume Production and Capacity Expansion Ceremony, Marking a Key Milestone for Advanced Manufacturing[PDF] Q4 2025 Taiwan Semiconductor Manufacturing Co Ltd Earnings ...Nvidia challenges Apple's longtime TSMC priority - digitimesIntel aims to overtake Samsung in contract chipmaking. TSMC might help - Nikkei AsiaTSMC capacity limits open doors for rival chip foundries
TSMC February sales hit record high on strong 3nm demand - Focus Taiwan
South Korean AI IC Design Companies Shifting to Dual-Foundry Model with Both Samsung and TSMC
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