TSMC and SK Hynix Lead AI Chip Shortage as Demand Surges

Taiwan's TSMC reported a 58% jump in quarterly profit to about $18 billion, driven by explosive AI‑chip demand that is straining its production capacity. Major customers such as Google and Chinese automaker BYD are evaluating Samsung as an alternative source. To secure its U.S. footprint, TSMC signed a ten‑year agreement with Amkor Technology to expand packaging and testing operations in Arizona, complementing its plans for three new fabs in the state. The company also highlighted a planned U.S. alliance with Intel and Apple to bolster domestic supply chains.

In South Korea, SK Hynix and Samsung announced the next generation of high‑bandwidth memory (HBM4E). SK Hynix shipped 12‑layer chips delivering 48 GB per stack and roughly 4 TB/s bandwidth, while Samsung began mass production of HBM4 and secured long‑term supply deals with Nvidia, AMD, Broadcom and Google. Analysts forecast the HBM market could grow from $76 billion in 2025 to $156 billion by 2027, underscoring the critical role of these memory technologies in AI infrastructure.