TSMC is expanding faster than ever to keep up with AI chip demand, which is good news for shareholders but shows how badly supply is lagging behind orders.

• TSMC has raised its quarterly chipmaking equipment purchases to nearly double what it planned back in December.
• It is building or fitting out around 20 plants at once in Taiwan and abroad, against the usual four or five.
• Nvidia and AMD keep raising orders, and Nvidia expects its sales to grow another 70% next year despite already being close to $100 billion a quarter.
• Supply is so tight that MediaTek's chief executive publicly asked TSMC for more capacity during an industry panel.
• Fast expansion has a catch: TSMC is short of experienced construction workers in Taiwan.

Outlook: Analysts still rate the stock a buy with target prices well above where it trades now, and TSMC says it will keep working through next year to close the gap between chip supply and customer demand.