TSMC's Wei: We Aim for Sustainability, Won't Suddenly Hike Prices Like Memory Makers
TSMC Chairman and CEO C.C. Wei stated after the shareholders' meeting that the company pursues sustainable operations and will not suddenly raise prices by 4 times like memory manufacturers. While expressing envy at memory makers' 80% gross margin, he emphasized that trust with customers must be built over the long term. Wei also quoted Jensen Huang, noting that AI development requires coordination of power, chips, cooling, and more, and that TSMC is working hard to expand capacity to avoid becoming a bottleneck.
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- 📰 Published: June 4, 2026 at 16:57
- 🔍 Collected: June 4, 2026 at 17:15 (18 min after Published)
- 🤖 AI Analyzed: June 6, 2026 at 16:08 (46h 53m after Collected)
(Central News Agency, Hsinchu, June 4) The memory market is experiencing severe supply shortages and price surges, with some memory manufacturers' gross margins soaring to 80%. In response, TSMC Chairman and CEO C.C. Wei expressed envy at the 80% gross margins of memory makers but stated that TSMC is a reliable company aiming for sustainable operations and will not suddenly raise prices by 4 times like memory manufacturers.
Rapid advancements in artificial intelligence (AI) have led to severe shortages in advanced semiconductor manufacturing capacity and components like memory. Speaking with the media after TSMC's shareholders' meeting today, Wei quoted NVIDIA CEO Jensen Huang, pointing out that AI development requires sufficient electricity, as well as chips, cooling, and other components, before models can be built.
Wei said that with the development of the AI industry, demand has surged suddenly, and the ecosystem has been unable to adapt, creating bottlenecks everywhere. TSMC is working hard to build factories and do its best to ensure it does not become a bottleneck.
Regarding the shortage of components, Wei noted that suppliers and buyers will seek solutions. For example, memory shortages might be addressed by reducing the memory capacity in devices. Eventually, a balance between supply and demand will be found, and "it won't be painful for three consecutive years."
On the topic of price increases, Wei pointed out that TSMC wants to raise prices and is working on it. TSMC's gross margin has climbed from over 40% previously to over 50%, and now exceeds 60%, which is the result of the collective efforts of TSMC employees.
Wei said that wafer prices are meant to recover the value TSMC deserves. While the company wants to make money and envies memory makers' 80% gross margins, TSMC will not suddenly raise prices by 4 times like memory manufacturers, because mutual trust with customers must be built over a long period, and TSMC aims for sustainable operations. (Editor: Zhang Junmao) 1150604
Rapid advancements in artificial intelligence (AI) have led to severe shortages in advanced semiconductor manufacturing capacity and components like memory. Speaking with the media after TSMC's shareholders' meeting today, Wei quoted NVIDIA CEO Jensen Huang, pointing out that AI development requires sufficient electricity, as well as chips, cooling, and other components, before models can be built.
Wei said that with the development of the AI industry, demand has surged suddenly, and the ecosystem has been unable to adapt, creating bottlenecks everywhere. TSMC is working hard to build factories and do its best to ensure it does not become a bottleneck.
Regarding the shortage of components, Wei noted that suppliers and buyers will seek solutions. For example, memory shortages might be addressed by reducing the memory capacity in devices. Eventually, a balance between supply and demand will be found, and "it won't be painful for three consecutive years."
On the topic of price increases, Wei pointed out that TSMC wants to raise prices and is working on it. TSMC's gross margin has climbed from over 40% previously to over 50%, and now exceeds 60%, which is the result of the collective efforts of TSMC employees.
Wei said that wafer prices are meant to recover the value TSMC deserves. While the company wants to make money and envies memory makers' 80% gross margins, TSMC will not suddenly raise prices by 4 times like memory manufacturers, because mutual trust with customers must be built over a long period, and TSMC aims for sustainable operations. (Editor: Zhang Junmao) 1150604