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TSMC Warns AI Chip Demand Will Exceed Supply for Years

Planned U.S. expansion with selective purchases of next‑generation lithography is meant to protect margins as AI and robotics drive long‑term chip demand.

Overview

  • At its annual shareholders' meeting on Thursday, June 4, CEO C. C. Wei said global chip capacity will fall short of AI‑driven demand for years and reaffirmed a full‑year sales growth forecast above 30 percent.
  • TSMC told investors it will add at least four more U.S. fabs on top of six already planned, a push that implies roughly $100 billion in extra capital beyond prior commitments.
  • The company has bought ASML High‑NA EUV machines for next‑generation chips but will delay mass deployment until using them is economically viable.
  • Management signalled measured interest in raising prices to protect margins while stressing it will avoid abrupt hikes so as to preserve long‑term customer ties.
  • TSMC said it is shifting some focus beyond data‑center chips to markets like autonomous vehicles and robotics, offered rising employee profit sharing, and defended the stability of its Nanjing operations.