During TSMC's annual shareholder meeting held at its headquarters in Hsinchu, Taiwan, on June 4, Chairman Wei Zhejia noted that customers remain optimistic about AI prospects, stating, "I am confident in our growth over the next few years."
He highlighted the rising adoption rates of AI models across consumer, enterprise, and sovereign applications, saying, "This trend is driving demand for stronger computing capabilities and supporting robust demand for advanced semiconductor chips."
Wei projected that AI will expand beyond data centers into personal computers, smartphones, automobiles, and Internet of Things (IoT) devices. He emphasized that TSMC's leading technology and exceptional manufacturing capabilities will continue to grow in value as a result.
Regarding the potential for price increases, Wei responded to a question about whether TSMC would ask customers for higher prices, saying, "I really want to do that; we also need to make a profit in the end." However, he drew a line at abrupt price hikes, stating, "We do not want to raise prices suddenly like memory companies; that is not sustainable. TSMC focuses on long-term and sustainable operations. We are not that kind of company."
Wei indicated that significant capital investments to meet rising AI demand would continue for the foreseeable future. When asked during the Q&A session about when TSMC's capital expenditures might peak and when they could be reduced, he candidly replied, "Honestly, I don't know." He added that he does not currently see any signals indicating a need to cut capital expenditures.
TSMC expects its capital expenditures for the year to range between $52 billion and $56 billion, which he explained reflects the company's strong confidence in future growth.
The company is also accelerating its production expansion in the United States. Wei stated that while TSMC is doing everything possible to meet customer demand, it will take a "considerably long time" to fully satisfy U.S. customer needs solely through domestic production, without providing a specific timeline.
Wei expressed gratitude for shareholder support, noting that TSMC's stock price has risen from NT$950 (approximately $31) at last year's shareholder meeting to NT$2,425 (approximately $80) as of the previous day, marking an impressive increase of over 150% in the past year.
He shared that the company plans to increase this year's dividend to at least NT$24, a rise of over 30% compared to the previous year, asserting, "I am confident that TSMC's performance will continue to outperform the industry."
Additionally, he projected that TSMC's revenue for 2025 would reach NT$3.8 trillion, a 31.8% increase from the previous year, and that the company expects to maintain over 30% revenue growth in dollar terms this year.
Wei also expressed a commitment to enhancing employee compensation. In response to a shareholder's request for increased performance bonuses, he stated, "TSMC will definitely strive to improve employee welfare," noting that the average annual increase in employee bonuses over the past three years has exceeded 30% and expressing hope that this trend will continue.
He concluded by stating, "We are continuously expanding our production capacity to support customer growth while ensuring that shareholders receive stable and sustainable investment returns," and emphasized the company's commitment to sustainable corporate responsibility and sound governance.
* This article has been translated by AI.
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