TSMC executive fields at least 10 calls a day as AI buyers compete for chip capacity

TSMC’s North American CEO, Sajiv Dalal, receives at least 10 calls a day about chipmaking capacity, he told CNBC. Major customers including Nvidia and AMD negotiate supply years ahead. That competition for factory access surrounds TSMC’s October 15 record-profit report, as AI demand intensifies pressure on the world’s leading advanced-chip manufacturer.

TSMC posted record profit for a sixth consecutive quarter and forecast fourth-quarter revenue 58% above a year earlier. The outlook reflects strong demand for its advanced chipmaking technologies; it is not a completed sales result.

Mizuho Securities analyst Jordan Klein warned that constraints could threaten some AI infrastructure investments and companies’ aggressive revenue-growth targets. His warning depends on computing demand continuing to grow at its current rate over the next 12 to 18 months.

Factory access is negotiated years ahead

Nvidia and AMD arrange lengthy contracts and tailored manufacturing deals with TSMC. They share the manufacturer with a growing group of custom-chip customers: Apple, Google, Amazon, Microsoft, Meta and OpenAI also rely on TSMC to manufacture their in-house AI processors, according to CNBC.

Smaller chip designers face a concentrated customer base. TSMC served 534 customers in 2025, but its top 10 generated 78% of net revenue. D-Matrix CEO Sid Sheth, whose company uses TSMC to make its processors, has cultivated a relationship with the manufacturer for more than 20 years.

Sheth said TSMC is selective but has reason to support promising newcomers: it backed Nvidia and Broadcom when they were young companies. His argument is that today’s smaller orders can become tomorrow’s major accounts. TSMC declined to participate in CNBC’s capacity story.

New factories offer slower relief

TSMC is building factories in Taiwan, Japan and Arizona, but that added capacity will take years to come online. In July, it announced another $100 billion and several more factories in Arizona, bringing its total commitment there to $265 billion, CNBC reported.

For nearer-term relief, analysts say TSMC is installing additional equipment in existing factories, including ASML’s extreme ultraviolet lithography machines—tools used to make chips.

The constraints could help Samsung and Intel win advanced-chip manufacturing customers. Intel’s contract-manufacturing business has struggled with delays and setbacks for years. Still, Hutcheson told CNBC that all the big chipmakers are now testing there. Testing does not mean they have committed large-scale production orders.