TSMC Chairman Says 'Very Long Time' to Meet Customer Demand; Facility Partners' Stocks Rise

TSMC held its annual shareholder meeting on June 4. Chairman and CEO C.C. Wei stated that the company is actively expanding capacity in both the US and Taiwan, but it will take a 'very long time' to satisfy customer demand. Market analysts expect companies like UIS, which provide cleanroom and facility services, to benefit from TSMC's expansion, leading to a rise in their stock prices on June 5. Demand for artificial intelligence (AI) is exceeding expectations, causing a supply shortage for TSMC's advanced process capacity. Shareholders asked when TSMC would be able to meet customer demand and when capital expenditure would peak. Wei said TSMC's high-end chip capacity in the US is far from sufficient, and its Taiwan capacity also cannot fully meet customer demand. The company is accelerating expansion not only in the US but also in Taiwan, and it will take a 'very long time' to satisfy customer needs. He added that there are currently no indicators to stop capital expenditure. Market analysts interpret Wei's comments as a sign that TSMC will continue to invest and expand aggressively, which will benefit its facility construction partners like UIS. Consequently, their stock prices rose on June 5. UIS shares reached TWD 1,280 during trading, up TWD 50, while J&J Energy shares hit TWD 960, up TWD 26.