TSMC CEO C C Wei Rejects RAM Pricing Tactics Amid AI Boom, Reaffirms Commitment to Stable Costs
TSMC CEO C.C. Wei has addressed the immense demand for AI chips, stating that supply issues will persist for years. While criticising RAM manufacturers for aggressive pricing, Wei confirmed TSMC will avoid steep hikes despite high demand. Additionally, he noted that U.S. production facilities will take significant time to meet American customer requirements fully.
TSMC CEO C.C. Wei has highlighted the immense strain on the global semiconductor supply chain driven by the ongoing artificial intelligence boom. During the company’s annual shareholder meeting, Wei emphasised that meeting consumer demand will require years of effort, even as he criticised memory chip manufacturers for implementing aggressive, high-margin pricing strategies during this period of industry scarcity.
TSMC Pricing Strategy and Market Stance
Addressing concerns regarding potential price hikes, Wei acknowledged the profitability seen in the memory sector but ruled out similar tactics for his firm. He stated, “I envy their 80% gross margins, but I would never do that,” noting that while he is interested in higher chip prices, TSMC is committed to avoiding the steep increases observed elsewhere in the industry. The company is currently monitoring how broader component cost rises affect the tech market to ensure it does not become a bottleneck for global production. Smartphone Prices Set To Rise Sharply Over Next Multi-Year Period Due to Soaring Memory Chip Costs, Warns Xiaomi CEO Lei Jun.
TSMC Facing Challenges in U.S. Production and Future Tech
Wei also addressed TSMC’s significant investment in the United States, where the company is spending $165 billion to establish new microchip factories in Arizona. He warned that domestic production in the U.S. will not provide an immediate solution to supply chain issues, noting that it will take a “very long time” to fully satisfy American customers’ requirements through these facilities. India Smartphone Market Face Sharp Decline as Entry-Level Segment Sales Collapse Amid Rising Memory Costs.
Regarding advanced manufacturing tools, Wei discussed the integration of ASML’s “High-NA EUV” machines. While TSMC has acquired these tools for research purposes, Wei indicated that they are currently too expensive for mass production. The firm plans to optimise the economics of these machines before full-scale deployment, while looking toward robotics and autonomous vehicles as key drivers for long-term growth.
(The above story first appeared on LatestLY on Jun 07, 2026 05:24 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).
