AVGO · News · 20261018N

AI Chip Supply Constraints

Broadcom Inc. · 2026-10-18 · Importance 40 · Surprise 42

Broadcom is reportedly competing with Nvidia, Apple, and other AI-chip customers for Taiwan Semiconductor Manufacturing Co.’s expanding advanced-node capacity in 2026. TSMC is scaling its global manufacturing footprint to support sustained demand for high-performance computing chips used in data-center AI workloads. The supply bottleneck creates a capacity constraint for Broadcom’s custom AI-chip growth, despite foundry expansion.

Key facts

• Broadcom is competing with other AI chip clients for Taiwan Semiconductor Manufacturing Co.'s expanding advanced capacity in 2026. source
• Broadcom sends its chip designs to TSMC, which builds them and returns finished silicon. source