Taiwan Semiconductor Warns AI Chip Shortages Could Persist Years Despite $165B US Buildout
TSM•TSMC CEO C.C. Wei warned at the annual shareholder meeting that AI-driven demand for advanced chips could outpace supply for years, even as the company adds US capacity. TSMC maintains a sales growth forecast above 30% and plans $165 billion in US investments, with potential for an additional $100 billion.
1. AI Supply Constraints
At the annual shareholder meeting, CEO C.C. Wei warned that AI-driven demand for advanced semiconductors is outpacing TSMC's capacity, predicting that supply constraints could persist for years despite upcoming capacity additions in the United States.
2. Bullish Sales Growth Outlook
TSMC reiterated its forecast for more than 30% sales growth this year, driven by rising demand from major cloud providers and chip designers that are expected to spend $725 billion on AI infrastructure globally in 2026.
3. US Expansion Plans
The company plans six new US fabrication facilities backed by $165 billion in investment, and is evaluating at least four additional plants that could require roughly $100 billion more, underscoring its commitment to expanding capacity outside Taiwan.
4. Market Reaction and Stock Performance
Shares fell 1.7% following comments on supply pressures and mixed customer outlooks, though the stock has climbed over 400% in the past three years as AI demand transformed TSMC's long-term growth trajectory.
