TSMC's CEO warns that AI chip demand will outpace supply for years, even as the company forecasts over 30% sales growth and expands U.S. manufacturing.

What happened: On June 4, 2026, TSMC CEO C.C. Wei stated that global chip supply will remain constrained relative to AI-driven demand for years, and that even with expanded U.S. manufacturing capacity, TSMC will not fully meet strong customer demand. The company also forecasts sales growth of more than 30% this year and plans to increase average bonus payouts for staff by more than 30%.

Why it matters: TSMC is the world's leading manufacturer of the advanced chips that power AI systems, so its inability to keep pace with demand signals a structural bottleneck in AI infrastructure. This supply shortage could limit how quickly companies can deploy new AI services, and it affects customers across the industry who depend on TSMC's production.

What to watch: TSMC is also partnering with Sony Semiconductor Solutions to develop next-generation image sensors through a joint venture at Sony's fab in Kumamoto Prefecture, combining Sony's sensor design expertise with TSMC's manufacturing strengths and exploring applications in automotive and robotics.