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Tue, 09 Jun 2026

Tue, 09 Jun 2026 World's largest chipmaker does not rule out price rises as costs increase

In a rare interview, a senior executive at TSMC discusses the AI boom, the geopolitics of chips and what it means for the price of electronics.
Taiwan Semiconductor Manufacturing Company (TSMC), the world's largest chipmaker, says it's facing increased costs due to inflation and hasn't ruled out price hikes. TSMC makes advanced chips for companies like Nvidia, AMD, and Apple, so any price increase could impact the cost of AI infrastructure and consumer electronics. The company's CFO, Wendell Huang, emphasized that any price rises will be gradual and not sudden, stating "We reflect our value." He attributed this to the firm's technology leadership and manufacturing excellence. Huang also denied claims that the AI boom is a bubble, saying that TSMC has strong convictions about the megatrend. The company is expanding its manufacturing capacity in the US, Germany, Japan, and Taiwan itself, but Huang claimed it's due to customer demand, not government pressure. When asked where the most advanced chips will be made, Huang stated that production will remain in Taiwan for now, citing a 5-10 year timeline to relocate the ecosystem. This contradicts US industrial policy goals, which aim to move manufacturing to the US. TSMC's shares have surged due to demand for AI chips, but Huang acknowledged increased costs due to inflation and expressed concerns about sustaining the growth pace. Despite pressure from investors, TSMC is focused on meeting customer demands and keeping up with growing AI infrastructure needs.