TSMC CFO Does Not Rule Out Price Hikes in BBC Exclusive Interview

(Central News Agency, London, 10th Combined Foreign News) Wendell Huang, CFO of TSMC, the world's largest dedicated semiconductor foundry, did not rule out the possibility of raising product prices in an exclusive interview with the British Broadcasting Corporation (BBC). He also stated that the artificial intelligence (AI) boom is not a bubble about to burst.

A BBC reporter recently visited the Hsinchu Science Park to cover TSMC's annual shareholders' meeting and conducted an exclusive interview with Huang. During the interview, he also denied that TSMC's global expansion is driven by geopolitical pressure.

According to the BBC, TSMC Chairman and CEO C.C. Wei told shareholders at the meeting that he wanted to raise prices. Although Huang did not explicitly state that prices would be raised, he said, 'Inflation has indeed increased our costs,' but added that TSMC would not suddenly raise prices by '4 or 5 times.'

With the rapid growth in demand for AI chips, TSMC's stock price has surged significantly over the past year. Huang stated that the company is under pressure to keep up with customer demand.

The stock market is also under pressure, as global investors ponder whether the wave of massive spending on AI infrastructure is sustainable. Earlier this week, Asian tech stocks fell sharply, and US tech stocks experienced a similar sell-off on the 5th, with growing concerns about overvaluation.

However, Huang insisted that the AI boom is not a bubble about to burst. 'We have a very strong conviction about this AI mega-trend. We have talked to our customers and our customers' customers... mainly the hyperscale cloud service providers,' he said.

'These companies are very financially strong and have substantial financial resources. So we believe they have the ability to continue investing.'

TSMC is currently expanding its manufacturing operations in the United States, Germany, and Japan, while also expanding production in Taiwan. However, Huang refuted the notion that this is a response to pressure from Washington or Beijing.

He said TSMC builds capacity outside of Taiwan based on customer demand; customers want them to be there, 'it's not a government requirement.'

Huang also clearly stated that the most cutting-edge production will remain in Taiwan, adding that moving the entire manufacturing ecosystem to the United States would take 'five years, or ten years, or even longer.' (Editor: Yang Zhaoyan) 1150610