Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest contract chipmaker, remains highly optimistic about its future growth as demand for artificial intelligence technologies continues to surge worldwide.
Speaking at the company’s annual shareholder meeting in Hsinchu on Thursday, TSMC Chief Executive Officer C.C. Wei said the rapid expansion of AI applications is creating strong and sustained demand for advanced semiconductor chips, positioning the company for continued growth in the years ahead.
Wei also hinted that TSMC could eventually increase chip prices, although he emphasized the company would pursue a measured and sustainable approach rather than implementing sudden price hikes.
AI Demand Continues to Fuel Growth
According to Wei, demand for computing power continues to rise as artificial intelligence becomes increasingly integrated into consumer products, enterprise systems and government backed AI initiatives.
He said the growing adoption of AI models across multiple industries is driving demand for advanced semiconductors and high performance computing infrastructure.
Despite aggressive expansion efforts, Wei acknowledged that TSMC is struggling to fully meet customer demand due to the scale of the ongoing AI boom.
The company remains one of the most important suppliers in the global AI ecosystem, manufacturing advanced chips used by major technology companies including Nvidia and Apple.
CEO Suggests Future Chip Price Increases
During the shareholder meeting, Wei was asked whether TSMC could raise prices for its customers.
His response suggested that higher prices may eventually be considered as the company seeks to maintain profitability while investing heavily in new production facilities.
However, Wei stressed that TSMC is committed to long term business stability and would avoid sudden price increases similar to those sometimes seen in memory chip markets.
The company believes predictable pricing and long term customer relationships remain key pillars of its business strategy.
Massive Investment in US Manufacturing
TSMC is investing approximately $165 billion in manufacturing facilities in Arizona as part of its effort to expand production capacity and strengthen its presence in the United States.
Wei said the company currently has sufficient land in Arizona to support expansion plans for at least the next decade.
However, he acknowledged that it will take considerable time before US facilities can fully meet demand from American customers.
The investment reflects growing efforts by governments and technology companies to diversify semiconductor production and strengthen supply chain resilience.
High NA Technology Still Too Expensive for Mass Production
Wei also discussed TSMC’s work with next generation High NA Extreme Ultraviolet lithography machines developed by ASML.
These advanced systems can cost up to $400 million each and are considered essential for producing future generations of cutting edge chips.
Although TSMC has acquired High NA equipment and is conducting research and development using the technology, Wei said production deployment remains limited because costs are still too high.
The company plans to continue evaluating the technology and will expand usage once it becomes economically viable for large scale manufacturing.
Employee Profit Sharing Continues to Rise
Amid growing scrutiny of how technology companies are distributing profits generated by the AI boom, TSMC highlighted significant increases in employee compensation.
Wei said employee profit sharing increased by approximately 30 percent from 2023 to 2024 and rose by a similar amount between 2024 and 2025.
He added that management expects another 30 percent increase in 2026 and indicated there is no fixed limit on future growth in employee profit sharing.
The comments come as labor issues and compensation disputes have become increasingly prominent across the global technology sector.
Autonomous Vehicles and Robotics Seen as Future Growth Drivers
While artificial intelligence remains the company’s primary growth engine, Wei also pointed to autonomous vehicles and robotics as major long term opportunities.
He said TSMC is investing resources to support technological advances in both sectors, which are expected to require increasingly sophisticated semiconductor solutions.
According to Wei, Taiwan continues to provide TSMC with critical advantages, including highly skilled talent, advanced research capabilities and its largest manufacturing base.
Taiwan Strengthens Position in Global AI Supply Chain
TSMC’s comments came during a week when Taiwan has become a focal point for the global technology industry through the annual Computex conference.
Executives from leading technology companies have praised Taiwan’s importance in semiconductor manufacturing and artificial intelligence infrastructure.
The island plays a central role in producing the advanced chips that power AI systems, data centers and next generation computing technologies.
Its strategic significance has only increased as demand for AI hardware accelerates worldwide.
Geopolitical Risks Remain in Focus
Despite strong business momentum, TSMC continues to operate amid significant geopolitical uncertainty.
China has intensified military pressure on Taiwan in recent years, while Beijing continues to claim the self governed island as part of its territory.
Given TSMC’s critical role in global semiconductor production, any disruption involving Taiwan could have major consequences for technology supply chains worldwide.
As a result, governments and corporations continue to closely monitor developments in the region.
Analysis: TSMC Remains One of the Biggest Winners of the AI Era
TSMC’s latest comments reinforce its position as one of the primary beneficiaries of the global artificial intelligence boom.
While software companies often dominate discussions about AI, the industry’s growth ultimately depends on advanced semiconductor manufacturing. Every major AI platform requires increasingly powerful chips, and TSMC remains at the center of that ecosystem.
The company’s willingness to discuss potential price increases reflects the extraordinary demand environment currently shaping the semiconductor industry. Unlike previous technology cycles, AI demand appears broad based and sustained across consumer, enterprise and government sectors.
At the same time, TSMC’s massive investments in US manufacturing demonstrate the growing importance of supply chain diversification and geopolitical risk management. Expanding production outside Taiwan may help address customer concerns, but building advanced semiconductor capacity remains a complex and expensive process.
Looking ahead, TSMC appears well positioned to benefit not only from AI growth but also from emerging technologies such as autonomous vehicles and robotics. If current trends continue, the company is likely to remain a critical pillar of the global technology industry for years to come.
Conclusion
TSMC has reaffirmed its confidence in long term growth as artificial intelligence continues to drive unprecedented demand for advanced semiconductors. With major investments in manufacturing capacity, rising employee compensation and expanding opportunities in AI, robotics and autonomous vehicles, the company remains at the forefront of the global technology revolution. However, geopolitical risks and the challenge of meeting overwhelming customer demand will continue to shape its future strategy.
With information from Reuters.
