Wendell Huang, TSMC's Chief Financial Officer, stated in a BBC interview on June 9 that "inflation has led to increased costs," leaving the door open for potential price hikes. However, he clarified that TSMC would not implement drastic increases of "four or five times" the current prices.
Huang explained that TSMC reflects its value, including technological advantages and manufacturing capabilities, in its pricing. This suggests that, in addition to rising costs, the value of advanced processes may also be factored into pricing.
TSMC manufactures advanced semiconductors designed by global companies such as NVIDIA, AMD, and Apple. Any price increases from TSMC could raise costs for AI data centers and servers, potentially impacting the prices of electronic devices like smartphones and laptops in the long term.
Recently, TSMC has faced pressure to expand its production capacity due to a surge in demand for AI semiconductors. Chairman Mark Liu mentioned at a recent shareholders' meeting that it would take time to meet customer demand. According to Reuters, Liu expressed a desire to raise prices amid rising component costs but emphasized that TSMC would not pursue sharp increases like some memory manufacturers.
TSMC is expanding its manufacturing presence overseas, including in Arizona, Japan, and Germany. The U.S. has been urging TSMC to invest locally to secure its critical semiconductor supply chain. TSMC's total investment in the U.S. is projected to reach $165 billion (approximately 252 trillion won).
However, Huang clarified that the expansion of overseas factories is not driven by geopolitical pressures. He stated, "We are building production capacity outside Taiwan because our customers want it, not due to government requests."
For the foreseeable future, the center of advanced semiconductor production is expected to remain in Taiwan. Huang noted that shifting the semiconductor manufacturing ecosystem to the U.S. could take five to ten years or even longer.
Addressing concerns about an AI bubble, he remarked, "We view AI as a long-term trend," adding that TSMC is confirming demand not only from direct customers like NVIDIA but also from hyperscalers operating large data centers.
* This article has been translated by AI.
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