Taiwan’s TSMC, the world’s largest contract chipmaker, is confident in its growth over the next few years, thanks to robust demand for computing power and advanced semiconductors as it rides an AI boom, its chief executive said on Thursday.
C.C. Wei, speaking at TSMC ‘s annual shareholders’ meeting in the northern Taiwanese city of Hsinchu, said customers are still positive on the growth outlook for AI, although the company continues to monitor the impact of rising component costs.
“We continue to see increasing adoption of AI models across consumer, enterprise and sovereign AI applications,” Wei said.
“This trend is driving demand for greater computing power, which in turn supports strong demand for advanced semiconductor chips.”
Increase In Profit Share
TSMC is working hard to meet all customer demands, although it will take a “very long time” to fully satisfy American customers’ needs with production in the U.S., he said, without elaborating on a time frame.
Wei said TSMC ‘s growth and performance over the past year had been remarkable, with its share price climbing to T$2,425 by Wednesday from T$950 on June 3 last year.
“(Our) employee profit sharing increased by about 30% from 2023 to 2024 and again by about 30% from 2024 to 2025,” he said. “We are confident it will rise by another 30% in 2026.”
“We believe this represents strong compensation for our employees,” he said, adding that there is no ceiling for 30% annual growth in terms of employee profit sharing, as it will continue to grow.
Looking ahead, he said he views autonomous vehicles as long-term growth drivers, and the company will be working hard to ensure robots can succeed.
Taiwan has been in focus this week as it hosts the annual Computex conference, where leaders of some of the world’s most powerful tech companies are gathering. Executives from the likes of Nvidia and Intel have praised the island’s central role in the global supply chain.
Robust Growth
In April, TSMC, a major Nvidia supplier, raised its annual revenue forecast and said it was stepping up capital spending this year to meet relentless demand for its products.
TSMC faces political risk as China steps up military pressure on democratically and separately governed Taiwan, which Beijing views as “sacred” Chinese territory.
Nvidia CEO Jensen Huang has held court in Taiwan over the past few days, dining with South Korean technology leaders and signing autographs for some of his fans, just weeks after accompanying U.S. President Donald Trump on a visit to Beijing as part of a corporate delegation.
As the AI boom shows no signs of letting up, Huang said at Computex that his company has enough supply to accommodate robust growth in central processing units and graphics processing units, although constraints remain a concern.
(with inputs from Reuters)
