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TSMC Warns Chip Supply Chain Tightness to Last for Years, Reaffirms Over 30% Revenue Growth Target for the Year

According to TrendForce's Monitor, at TSMC's annual shareholder meeting held in Hsinchu on Thursday, TSMC's Chairman and CEO C.C. Wei stated that global chip supply will not be able to meet the surging demand for AI in the coming years. Wei noted that even with TSMC expanding its manufacturing capacity in the United States, it still cannot fully satisfy the significant demand from its U.S. customers, and achieving supply-demand balance will take a long time. Despite the supply chain constraints, Wei reiterated TSMC's forecast of over 30% revenue growth for this year. TSMC had raised its full-year sales guidance in April, expecting capital expenditure to trend towards the upper end of the $56 billion forecast range, while the AI-related spending by major global hyperscale cloud service providers is projected to reach a record-breaking $725 billion this year.

Following disappointing performance outlook from customer Broadcom, TSMC's Taipei-listed shares slipped slightly by 1% today, but have surged more than fourfold over the past three years. In response to calls from the industry to share the benefits of the AI boom, Wei reiterated during the meeting that TSMC employees will see their average bonus increase by over 30% this year.

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