Overview
- TSMC, which told shareholders on Thursday, said global demand for advanced AI chips will exceed its capacity for years and that it cannot fully meet customer orders in the near term.
- CEO C. C. Wei signaled the company may raise prices gradually to protect margins but ruled out sudden, memory-style price spikes that would strain customer ties.
- The company reaffirmed more than 30% full-year sales growth and is pressing a large U.S. buildout, including a $165 billion Arizona commitment and plans for more fabs that could add roughly $100 billion in investment.
- TSMC confirmed it has bought ASML’s High‑NA EUV tools but will hold off on mass deployment until the machines are economically justified, and it said U.S. permit and construction labor delays are making earlier localization targets harder to hit.
- Employees will see sizable profit-sharing increases and markets reacted with a modest share dip, while the longer run effect may boost costs for hyperscalers and give rivals room to court customers if prices rise too quickly.