TSMC Chairman Gives Optimistic Outlook Amid Global Uncertainty, But Cautions on Economic Headwinds
In his first time presiding over Taiwan Semiconductor Manufacturing Company’s (TSMC) annual shareholders' meeting as Chairman, CC Wei delivered a confident yet measured address, highlighting both the company’s robust growth trajectory and the looming risks posed by global economic uncertainty.
Wei reaffirmed the strength of TSMC’s business, driven largely by surging demand for AI-related chips. "Right now, AI demand far exceeds supply—our business is doing extremely well," he said. "We fear nothing, except a downturn in the global economy."
Despite geopolitical tensions and the impact of tariffs, Wei stressed that TSMC is relatively insulated. "Tariffs may raise prices and suppress demand, but importers, not we, pay them,” said Wei. “The concern is downstream—if prices rise too much, it could dampen customer appetite."
TSMC estimated that for every 1% appreciation of the New Taiwan Dollar, its gross margin drops by 0.4%. “Recently, the NT dollar has appreciated by nearly 8% against the US dollar, so our gross margin has declined by about 3 percentage points due to exchange rate fluctuations,” Wei answered the question of a shareholder regarding the impact of foreign exchange volatility. “What can we do? Work hard—keep our technology at the top of the world and sell it at the value it deserves.”
Wei projected that TSMC’s 2025 revenue would grow by mid-20 percent in U.S. dollar terms, significantly outpacing the broader foundry industry’s growth, often referred to as "Foundry 2.0." He added that both revenue and profit are set to reach record highs this year.
Strong Outlook but Cautious Planning
TSMC is investing about $40 billion in capital expenditures this year. Wei noted this is a substantial outlay and requires detailed internal justification. “Every dollar must be explained to our board. From our financial results, we seem to be doing reasonably well.”
Asked about the five-to-ten-year outlook, Wei offered a succinct yet optimistic response: “Very good.” He said AI development requires sophisticated hardware, and "all AI clients in the world need TSMC's chips." As such, TSMC plays a critical role in enabling global AI advancement.
Wei acknowledged concerns about potential overcapacity amid a volatile global economy but emphasized that the company is rigorously managing its production plans. “All of our customers are saying demand in 2026 will be ‘unbelievable.’ When we add it all up, it exceeds what the global market can realistically absorb. We are expanding cautiously, guided by real data and continuous dialogue with our clients and their clients.”
On Workforce, Culture, and New Ventures
Wei also spoke about corporate culture and talent. TSMC brings in about 9,000 new hires annually, selecting those who align with its values. “We emphasize integrity first, then innovation and commitment. The company promises to support its employees, and we expect the same level of commitment in return.”
Responding to shareholder criticisms labeling TSMC as a “sweatshop,” Wei chuckled and responded with humor, “Do I look like I’ve been sweating? I’m too fat for that,” drawing laughs from the audience.
Wei emphasized that employee well-being is central to TSMC's philosophy: “We value initiative and happiness—only then can we thrive in this demanding industry and ensure happy families too.”
He also spoke about the company’s relationship with startups. “We want every small company to succeed. Who knows which one will be the next NVIDIA? Maybe next year we’ll have many ‘little NVIDIAs’.”
Uncertainty Still the Greatest Risk
Reflecting on the challenges of operating in a turbulent macroeconomic environment, Wei concluded, “As an entrepreneur, the greatest fear is uncertainty. If we invest, we might be wrong; if we don’t, we might fall behind. But we are the global leader in technology and manufacturing, and our customers trust us.”
He added, “As long as AI remains indispensable in our lives, TSMC will continue to be a great company, with a great future.”