TSMC Projects 30% Growth Amid Persistent AI Chip Shortages

Taiwan Semiconductor Manufacturing Company (TSMC) expects revenue growth exceeding 30% this year as demand for AI chips continues to outpace supply. CEO C.C. Wei stated that global chip supply will likely remain constrained for years, noting that the company cannot fully meet customer demand despite expanding its manufacturing capacity in the United States. To manage this growth, the company intends to implement controlled price increases and has raised average staff bonus payouts by more than 30%.

To optimize its semiconductor design and manufacturing processes, TSMC entered into a strategic agreement with NVIDIA Corporation. The partnership moves beyond a traditional supplier-customer relationship, with TSMC integrating NVIDIA's cuLitho for lithography, the Metropolis and TAO toolkits for wafer inspection, and NVIDIA Omniverse for digital twin creation. These developments coincide with a strong market performance, with TSMC shares rising 101% over the past year.

Expanding its portfolio, TSMC signed a non-binding memorandum of understanding with Sony Semiconductor Solutions Corporation to establish a joint venture for next-generation image sensors. This venture will utilize production lines at a Sony facility in Kumamoto, Japan. Looking forward, Wei identified robotics and autonomous driving as the company's primary long-term growth drivers.