AI demand is so high 'we can only produce so much': TSMC CEO says

The world's largest contract chipmaker says it is working as hard as it can, and it still is not enough. Speaking at TSMC's annual shareholders' meeting in Hsinchu on Thursday President and CEO of TSMC Che-Chia Wei said that the AI-driven demand for advanced semiconductors now outpaces TSMC's big supply capabilities. 

He explained to shareholders that everyone from consumers to enterprises, and even government AI programs, remains super optimistic about AI's prospects. Because of this, they want more computing power, which puts a tonne of pressure on TSMC's manufacturing.

"We are working very hard," he said, "but demand is high, and we can only produce so much."

The company puts an eye on growing component prices, which could impact margins. Yet, Wei didn't suggest any big disruptions to their growth soon.

One of the shareholder meeting's more candid moments came when Wei was asked whether TSMC planned to raise prices. "I'd like to do that," he said plainly, before adding: "We still need to make money."

He stated that TSMC wouldn't follow the big price swings that memory chip makers do, because that's not sustainable. It doesn't fit with their plan to build long-term relationships with customers, he added.

Wei added that TSMC is investing $165 billion in Arizona fabs. Plus, securing two parcels of land will meet production needs for the next ten years.

But he was measured about how quickly US-based manufacturing can close the gap with demand from American customers, describing the timeline as "a very long time", without specifying further.