TSMC Chairman Wei Zhejia Addresses US Fab Progress, Competition, and More at Shareholder Meeting
TSMC held its annual shareholder meeting on June 4, 2025, where Chairman and CEO C.C. Wei addressed key issues including US fab investment progress, competitive landscape, a 2nm leak case, pricing strategy, employee bonuses, and Taiwan's tech industry advantages. He confirmed the US investment has been increased to $100 billion and emphasized Taiwan remains the primary production base.
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- 📰 Published: June 4, 2026 at 20:07
- 🔍 Collected: June 4, 2026 at 20:17 (10 min after Published)
- 🤖 AI Analyzed: June 6, 2026 at 15:34 (43h 17m after Collected)
(Central News Agency reporter Zhang Jianzhong, Hsinchu, June 4) Taiwan's 'Protective Mountain' TSMC held its annual shareholder meeting today. Amid soaring stock prices, shareholders were eager to speak, and Chairman and CEO C.C. Wei responded directly to topics including the progress of the US fab, the competitive landscape, the 2nm leak case, pricing strategy, employee bonuses, and Taiwan's tech industry advantages.
As the helmsman of the 'Protective Mountain,' Wei shed his engineer persona, using a humorous and witty tone that frequently drew laughter from the audience. The meeting lasted three hours. Below is a summary of key points from the TSMC shareholder meeting.
Wei said TSMC originally planned to invest $65 billion in Arizona, USA, but later increased this to $100 billion, with plans to build five to six fabs. Based on long-term planning, TSMC purchased an additional piece of land, and the two current plots are sufficient for TSMC's use for the next ten years.
He stated that customers continue to grow, with growth in recent years being 'astonishing,' especially this year, which is extraordinary. Therefore, TSMC continues to increase production in the US. Regarding when new increased investment would be announced, Wei admitted that TSMC has plans and is discussing them with the government, but will never announce them without approval from the Taiwanese government.
Wei said TSMC is simultaneously accelerating expansion in Taiwan, which will remain TSMC's largest production base. When asked when customer demand could be met, he frankly stated, 'It will take a long time.'
Regarding competition from Intel and Samsung, Wei said TSMC has never lacked competitors and will strive to consistently outperform them. Regarding the world's richest man, Elon Musk, investing in the Terafab large-scale semiconductor manufacturing plant project, Wei said, 'I wish him well.'
Wei emphasized that semiconductor demand will always exist. By maintaining world-leading technology development, production efficiency, and customer service, TSMC will retain its opportunities. He predicted the next few years will be very good, with continued growth.
Regarding the 2nm leak case involving a TEL employee, Wei said it was not a violation of TEL's own policy but an employee's mistake. Since TEL was cooperative, it remains a very good supplier for TSMC. The case has been dealt with legally, and TSMC will not remove TEL from its supplier list, considering the matter closed.
Wei stated that TSMC wants to raise prices and is working on it. TSMC's gross margin has risen from over 40% to over 60%, a result of employee efforts.
He emphasized that wafer prices need to recover TSMC's due value and generate profit, but TSMC will not suddenly quadruple prices like memory manufacturers, aiming for sustainable operations.
He believes that with the development of the AI industry, demand has surged, and the ecosystem's response has been insufficient, creating bottlenecks everywhere. TSMC is working hard to build fabs to avoid becoming a bottleneck. Suppliers and buyers will find ways to balance supply and demand, and 'it won't be painful for three consecutive years.'
The issue of TSMC employee bonuses drew high attention from shareholders. Wei said employee bonuses have increased by 30% annually for the past three years and will increase by over 30% this year. He stated the company will spare no effort in taking care of employees, and bonuses will continue to rise with 'no ceiling.'
Regarding the recent strike crisis brewing at Samsung's labor union, Wei commented that memory companies have been loss-making for four of the past five years, with only one year of profit, questioning what bonuses employees could receive. TSMC's employee bonuses increase every year, focusing on long-term sustainable operations.
Wei said TSMC's commitment to shareholder returns will not change, promising that dividends will continue to grow. Previously, dividends increased by 30%, and last year they increased by 33%, surpassing inflation indicators.
Regarding the development of Taiwan's semiconductor and tech industries, Wei stated that Taiwan can maintain its advantage forever. Besides TSMC, there are packaging and testing companies, and assemblers like Hon Hai. This entire ecosystem has been built up by Taiwan over decades and cannot be replicated by South Korea. When asked if Taiwan could be caught up in a few years, he said, 'No,' 'Absolutely not.'
Wei gave an example, saying TSMC's competitors said 20 years ago they would catch up in 10 years, said 10 years ago they would catch up in 10 years, and recently said they would catch up in 10 years. His comment on the competitors was 'dreaming.'
Wei said NVIDIA CEO Jensen Huang is going to South Korea after his Taiwan trip because he needs memory, and South Korea is currently the largest memory producer. However, Huang consulted with TSMC before going to South Korea. 'I even know what kind of chicken he will eat. Have some confidence,' Wei said. (Editor: Lin Shuyuan) 1150604
As the helmsman of the 'Protective Mountain,' Wei shed his engineer persona, using a humorous and witty tone that frequently drew laughter from the audience. The meeting lasted three hours. Below is a summary of key points from the TSMC shareholder meeting.
Wei said TSMC originally planned to invest $65 billion in Arizona, USA, but later increased this to $100 billion, with plans to build five to six fabs. Based on long-term planning, TSMC purchased an additional piece of land, and the two current plots are sufficient for TSMC's use for the next ten years.
He stated that customers continue to grow, with growth in recent years being 'astonishing,' especially this year, which is extraordinary. Therefore, TSMC continues to increase production in the US. Regarding when new increased investment would be announced, Wei admitted that TSMC has plans and is discussing them with the government, but will never announce them without approval from the Taiwanese government.
Wei said TSMC is simultaneously accelerating expansion in Taiwan, which will remain TSMC's largest production base. When asked when customer demand could be met, he frankly stated, 'It will take a long time.'
Regarding competition from Intel and Samsung, Wei said TSMC has never lacked competitors and will strive to consistently outperform them. Regarding the world's richest man, Elon Musk, investing in the Terafab large-scale semiconductor manufacturing plant project, Wei said, 'I wish him well.'
Wei emphasized that semiconductor demand will always exist. By maintaining world-leading technology development, production efficiency, and customer service, TSMC will retain its opportunities. He predicted the next few years will be very good, with continued growth.
Regarding the 2nm leak case involving a TEL employee, Wei said it was not a violation of TEL's own policy but an employee's mistake. Since TEL was cooperative, it remains a very good supplier for TSMC. The case has been dealt with legally, and TSMC will not remove TEL from its supplier list, considering the matter closed.
Wei stated that TSMC wants to raise prices and is working on it. TSMC's gross margin has risen from over 40% to over 60%, a result of employee efforts.
He emphasized that wafer prices need to recover TSMC's due value and generate profit, but TSMC will not suddenly quadruple prices like memory manufacturers, aiming for sustainable operations.
He believes that with the development of the AI industry, demand has surged, and the ecosystem's response has been insufficient, creating bottlenecks everywhere. TSMC is working hard to build fabs to avoid becoming a bottleneck. Suppliers and buyers will find ways to balance supply and demand, and 'it won't be painful for three consecutive years.'
The issue of TSMC employee bonuses drew high attention from shareholders. Wei said employee bonuses have increased by 30% annually for the past three years and will increase by over 30% this year. He stated the company will spare no effort in taking care of employees, and bonuses will continue to rise with 'no ceiling.'
Regarding the recent strike crisis brewing at Samsung's labor union, Wei commented that memory companies have been loss-making for four of the past five years, with only one year of profit, questioning what bonuses employees could receive. TSMC's employee bonuses increase every year, focusing on long-term sustainable operations.
Wei said TSMC's commitment to shareholder returns will not change, promising that dividends will continue to grow. Previously, dividends increased by 30%, and last year they increased by 33%, surpassing inflation indicators.
Regarding the development of Taiwan's semiconductor and tech industries, Wei stated that Taiwan can maintain its advantage forever. Besides TSMC, there are packaging and testing companies, and assemblers like Hon Hai. This entire ecosystem has been built up by Taiwan over decades and cannot be replicated by South Korea. When asked if Taiwan could be caught up in a few years, he said, 'No,' 'Absolutely not.'
Wei gave an example, saying TSMC's competitors said 20 years ago they would catch up in 10 years, said 10 years ago they would catch up in 10 years, and recently said they would catch up in 10 years. His comment on the competitors was 'dreaming.'
Wei said NVIDIA CEO Jensen Huang is going to South Korea after his Taiwan trip because he needs memory, and South Korea is currently the largest memory producer. However, Huang consulted with TSMC before going to South Korea. 'I even know what kind of chicken he will eat. Have some confidence,' Wei said. (Editor: Lin Shuyuan) 1150604
FAQ
When was the TSMC shareholder meeting held?
It was held on June 4, 2025, in Hsinchu.
What is the investment amount for TSMC's US fab?
It was increased from $65 billion to $100 billion, with plans for 5-6 fabs.
Is TSMC considering price increases?
Yes, C.C. Wei stated they are considering price increases to reflect the true value of their wafers.