（Singapore, 04.06.2026）Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s largest contract chipmaker, expects demand for artificial intelligence (AI) chips to remain stronger than supply for years, highlighting the continued strength of the global AI boom.
Speaking at the company’s annual shareholders’ meeting in Hsinchu on Thursday, TSMC Chief Executive Officer C.C. Wei said the company is still unable to fully meet customer demand, even as it expands production capacity around the world, including in the United States.
“We are working very hard, but it will still take a long time before we can fully meet customer demand,” Wei said.
The comments reflect the extraordinary growth of AI-related technologies, which continue to drive demand for advanced semiconductor chips used in data centres, cloud computing, and AI applications. TSMC is a key supplier to major technology companies such as Nvidia and Advanced Micro Devices (AMD), both of which rely on the company’s advanced manufacturing capabilities.
According to Wei, demand for computing power continues to rise as AI models become more widely adopted across consumer, enterprise, and government applications.
“We continue to see increasing adoption of AI models across consumer, enterprise and sovereign AI applications,” he said. “This trend is driving demand for greater computing power, which in turn supports strong demand for advanced semiconductor chips.”
The rapid expansion of AI infrastructure is creating unprecedented demand across the semiconductor industry. Major technology companies, often referred to as hyperscalers, are expected to invest hundreds of billions of dollars in AI-related projects this year alone, creating further pressure on chip supply chains.
Despite adding manufacturing capacity in the United States, TSMC still cannot fully meet demand from American customers, Wei said, noting that it will take a very long time before supply catches up with demand.
Despite these challenges, TSMC remains highly optimistic about its business outlook. The company reaffirmed its forecast for revenue growth of more than 30% this year, supported by strong orders for advanced chips used in AI applications.
Earlier this year, TSMC raised its full-year revenue guidance and indicated that capital expenditure could reach the upper end of its previously announced range of up to US$56 billion. The increased investment is aimed at expanding production capacity and maintaining the company’s leadership in advanced chip manufacturing.
The company’s strong performance has also benefited shareholders. TSMC shares have risen sharply over the past few years as investors increasingly view the company as one of the biggest beneficiaries of the AI revolution.
Wei noted that TSMC’s share price has climbed significantly over the past year, reflecting growing confidence in the company’s long-term growth prospects. The stock has gained more than fourfold over the past three years as demand for AI chips accelerated worldwide.
The AI-driven growth has also translated into higher rewards for employees. During the meeting, Wei highlighted that profit-sharing payouts for staff have increased substantially in recent years.
Employee profit-sharing rose by about 30% from 2023 to 2024 and increased by another 30% from 2024 to 2025, he said. The company expects another similar increase in 2026.
“We believe this represents strong compensation for our employees,” Wei said, adding that there is no fixed ceiling on future growth in employee profit sharing as long as the company continues to perform well.
Beyond AI, TSMC is also looking at other technologies that could drive future demand for semiconductors. Wei identified autonomous vehicles and robotics as important long-term growth opportunities for the industry.
As vehicles become increasingly connected and autonomous, the amount of computing power required inside cars is expected to grow significantly. Similarly, advances in robotics will require more sophisticated chips capable of handling complex AI workloads.
The comments come during a week when Taiwan has once again become the centre of the global technology industry. The island hosts Computex, one of the world’s largest technology exhibitions, attracting executives from major companies including Nvidia and Intel.
Many industry leaders attending the event have praised Taiwan’s critical role in the global technology supply chain. The country remains home to some of the world’s most important semiconductor manufacturers and technology suppliers.
Nvidia Chief Executive Officer Jensen Huang, who has been one of the most closely watched figures at this year’s Computex, recently said demand for AI computing continues to grow rapidly. While supply constraints remain an industry concern, he noted that Nvidia has secured sufficient production capacity to support strong growth in both graphics processing units (GPUs) and central processing units (CPUs).
Despite the positive outlook, TSMC continues to face geopolitical challenges. Taiwan remains under increasing military pressure from China, which claims the self-governed island as part of its territory. Any escalation in tensions could potentially disrupt global semiconductor supply chains, given Taiwan’s central role in advanced chip production.
For now, however, TSMC’s focus remains firmly on meeting surging customer demand. As AI applications become more widespread and computing requirements continue to grow, the company expects demand for its advanced semiconductors to remain exceptionally strong for the foreseeable future.
