TSMC Bets on AI Demand for Future Growth, says CEO

Driven by surging AI demand, TSMC expects continued growth, expands global manufacturing capacity and identifies robotics and autonomous vehicles as future opportunities.

Taiwan Semiconductor Manufacturing Company (TSMC) expects strong growth in the coming years as demand for artificial intelligence (AI) applications continues to drive the need for advanced semiconductors and greater computing power.

According to a report by Reuters, speaking at the company’s annual shareholders’ meeting in Hsinchu on Thursday, Chief Executive Officer (CEO) C.C. Wei said TSMC remains optimistic about the outlook for AI-related business despite monitoring the impact of rising component costs.

Wei said the increasing adoption of AI models across consumer, enterprise and government applications is creating sustained demand for high-performance computing infrastructure. According to him, the growing need for processing power is translating into continued demand for advanced semiconductor technologies.

The executive also indicated that while TSMC is evaluating pricing strategies, the company remains focused on maintaining long-term and sustainable relationships with customers rather than implementing abrupt price increases.

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Addressing production capacity, Wei said TSMC is working to meet global customer demand, although expanding manufacturing capabilities in the United States will take time. The company is investing approximately $165 billion in Arizona facilities as part of its efforts to increase production capacity outside Taiwan.

TSMC has benefited significantly from the surge in AI investment. Wei noted that the company’s share price had risen substantially over the past year, reflecting investor confidence in its growth prospects. However, its shares traded lower on Thursday, broadly in line with Taiwan’s benchmark stock index.

On workforce matters, Wei said employee profit-sharing payments had increased by roughly 30 per cent in each of the past two years and could rise by a similar level again in 2026. The comments come at a time when compensation and labour relations have become a focus across the technology sector.

Looking beyond AI, Wei identified autonomous vehicles and robotics as potential long-term growth opportunities for the company. He also emphasised Taiwan’s continued importance to TSMC, describing the island as the centre of its research, development and manufacturing operations.

The company’s outlook comes amid growing global interest in AI technologies and during Taiwan’s Computex technology exhibition, where industry leaders have highlighted the island’s critical role in the global semiconductor supply chain.

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Shubha Mitra
Shubha Mitra
Shubha Mitra is an Assistant Editor at EFY, keenly interested in policies and developments shaping the electronics business.

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