TSMC CEO: AI chip supply to lag demand for years

Key facts

• TSMC CEO C.C. Wei stated global chip supply will fall short of AI-driven demand for years.
• TSMC is investing $165 billion in new U.S. factories and plans for at least four additional plants.
• TSMC has purchased ASML's High-NA EUV machines but will deploy them for mass production only when economically viable.
• TSMC employees will see an average bonus increase of more than 30% annually.
• Wei expressed a desire to raise chip prices but would avoid abrupt increases.

Taiwan Semiconductor Manufacturing Company (TSMC) CEO C.C. Wei informed shareholders that global chip supply will continue to fall short of AI-driven demand for years, even as the company expands its manufacturing capacity. Wei reiterated TSMC's full-year sales growth forecast of over 30%. The company plans to build at least four additional chipmaking plants in the U.S., requiring approximately $100 billion in new capital, on top of the $165 billion already committed for six planned facilities. Wei confirmed TSMC has purchased ASML's High-NA EUV lithography machines, which cost up to $400 million each, but their deployment for mass production is contingent on economic viability. He stated that the company has already purchased the equipment and is conducting research and development. TSMC employees will benefit from an average bonus increase of more than 30% this year. The company aims to maintain stable and predictable pricing for its customers, despite the high demand from hyperscalers investing heavily in AI infrastructure. TSMC is working hard to meet the immense demand driven by the AI boom and avoid becoming a bottleneck in the global supply chain. Wei also noted that meeting U.S. customers' needs with production in the U.S. will take a 'very long time' and that TSMC's previous target of locating 30% of its 2-nanometer-and-below capacity in the U.S. is becoming hard to achieve.