(June 4): Taiwan Semiconductor Manufacturing Co (TSMC) chief executive officer CC Wei said the company’s global chip supply will fall short of AI-fuelled demand for years to come, sustaining revenue growth for the firm.
Even with new manufacturing capacity in the US, TSMC can’t fulfill demand led by American customers, Wei said at the company’s annual shareholders’ meeting in Hsinchu, Taiwan, on Thursday. He reiterated its forecast for sales growth of more than 30% for this year.
Taiwan’s largest company is an essential player in the global AI industry by making cutting-edge semiconductors for the likes of Nvidia Corp and Advanced Micro Devices Inc. TSMC has been expanding its footprint beyond its home island to add capacity, yet even that isn’t enough to satisfy chip needs as major hyperscalers are set to spend US$725 billion for AI just this year.
“It will be a long time before we can meet customer demand,” Wei said.
Shares of TSMC declined 1% in Taipei after customer Broadcom Inc provided a disappointing outlook. The stock has more than quadrupled over the past three years, fuelled by a surge in its core business. On Thursday, Wei reiterated TSMC staff will get more than a 30% bump in their bonus payouts this year on average, addressing growing demands for the winners of the AI boom to share more of their profits.
In April, the company raised its full-year sales guidance and said its own capital spending should trend towards the upper end of an existing forecast range of as much as US$56 billion.
See also: Anthropic calls for AI pause button to let humans take stock
Uploaded by Liza Shireen Koshy
