Taiwan’s TSMC, the world’s largest contract semiconductor manufacturer, expressed confidence about the coming years as persistent demand for artificial intelligence and advanced chips points to ongoing growth. CEO Vej Csö‑csia spoke about the outlook at the company’s annual meeting in Hsinchu, northern Taiwan, saying partners remain optimistic about the future of the AI market.
Vej noted that AI models are being applied more widely across consumer, enterprise and government sectors, which is driving strong demand for advanced chips. He also said the company is monitoring the impact of rising input costs.
The CEO added that TSMC is doing everything to serve its U.S. customers, but ramping up production in the United States will take a long time before facilities can operate at full capacity; he did not provide a precise timeline.
Financial performance and employee profit‑sharing
Vej described the past year as outstanding: TSMC’s share price rose from 950 Taiwan dollars last June to 2,425 Taiwan dollars by the Wednesday of the annual meeting week. Employee profit‑sharing increased by about 30 percent from 2023 to 2024, then rose by roughly another 30 percent the following year; the CEO said he expects a similar pace of growth in 2026 and stressed there is no upper limit to that growth.
Long‑term growth drivers: autonomy and robotics
Among longer‑term growth drivers, the company highlighted autonomous vehicles and robotics, and reaffirmed its commitment to support robotics development.
Presence at Computex: Nvidia and Intel praise Taiwan
The company’s annual meeting coincided with the Computex trade show in Taiwan, where leading tech firms including Nvidia and Intel praised the island’s key role in the global supply chain. Jensen Huang, Nvidia’s CEO, said at the event that the company is striving to meet exceptional demand for CPUs and GPUs, although manufacturing capacity constraints remain a challenge.
TSMC, a key supplier to Nvidia, raised its revenue forecast for the year in April and said it is increasing investments as demand continues to grow.
Why it matters
TSMC’s plans and assessments reflect broader semiconductor industry trends: the rapid adoption of AI and related technologies is steadily increasing resource needs, while geographic diversification of production—such as building U.S. fabs—requires time and significant investment. The company’s financial performance and market reaction indicate investors remain bullish on TSMC even as capacity expansion faces logistical and timing constraints.
This article is based on a Reuters report. It is not investment advice or a recommendation.
