TSMC Warns Global Chip Supply-Demand Tension to Last for Years, Revenue Still Expected to Grow Over 30% This Year

Odaily reported that at the annual shareholders' meeting held in Hsinchu, TSMC Chairman and CEO C.C. Wei stated that the global chip supply will still be unable to meet the surge in AI demand for several years to come. Even with TSMC expanding production capacity in the U.S., it will be difficult to fully satisfy the demands of American customers, and achieving a balance between supply and demand will take a considerable amount of time.

C.C. Wei reiterated that TSMC still expects its sales to grow by more than 30% this year. The company's capital expenditure for this year is projected to approach the upper limit of $56 billion, while major global hyperscale cloud service providers are expected to spend as much as $725 billion on AI. Affected by Broadcom's performance outlook, TSMC's Taipei-listed shares fell slightly by 1%, but the cumulative increase over the past three years has more than quadrupled. C.C. Wei also mentioned that the average bonus for employees will increase by more than 30% this year.