TSMC CEO sends blunt message to memory chip rivals
One of the most important chipmakers on the planet could be squeezing its customers right now, as the AI shortage gives it every excuse.
But its CEO said he won't.
Taiwan Semiconductor Manufacturing (CSMC) Chief Executive Officer, C.C. Wei, used the company's annual shareholder meeting in Hsinchu, Taiwan, on June 4 to separate his pricing strategy from the one fueling the hottest trades in chips right now.
He did it while warning that the global chip supply will trail AI demand for years, even after TSMC finishes its giant U.S. buildout.
The comments landed as the wider semiconductor sector sold off, pulling TSMC's U.S.-listed shares (TSM) lower before the opening bell.
For anyone trying to figure out the future of AI chip profits, Wei's restraint is the detail worth sitting with.
Why TSMC's Wei won't copy memory chip makers on pricing
Asked at the meeting whether TSMC could raise prices, Wei said he would like to, given how hard demand is running. He then ruled out the abrupt increases that have rocked the memory market.
I envy their 80% gross margins, but I would never do that
His comment had a clear target.
Memory makers Micron (MU), SK Hynix, and Samsung have turned a brutal shortage into record profit, and Wei signaled he could do the same but won't.
TSM stock slipped about 2% in premarket trading on June 4, Yahoo Finance data showed, as chip names broadly retreated.
How a memory shortage made Micron, SK Hynix and Samsung the AI trade
Memory chips became the market's obsession because the AI boom turned them into one of the most profitable products in tech almost overnight.
DRAM prices jumped about 90% in the first quarter of 2026 from the prior quarter, TrendForce and other trackers reported.
High-bandwidth memory, the stacked chips that feed AI accelerators, earns several times more per wafer than standard memory, which pushed all three makers to convert lines and starve the consumer market.
Micron exited consumer memory altogether, Network World reported.
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The payoff was historic.
Micron, SK Hynix and Samsung each crossed a $1 trillion market value in May, TechTimes reported, a combined $3 trillion no memory trio had ever reached.
Micron stock is up more than 200% in 2026, dwarfing TSMC's roughly 40% gain. TSMC runs a 66% gross margin and still wants no part of the memory playbook.
What TSMC's supply warning means for AI chip buyers
The restraint matters because the squeeze is not ending.
Wei said it will take a very long time to fully serve American customers, even as new U.S. capacity comes online.
Related: TSMC executive drops blunt message on AI chip's next frontier
TSMC is spending $165 billion on its Arizona buildout, and Wei said two land parcels there should cover its needs for about a decade, Reuters reported.
Three things keeping AI chips scarce
- Hyperscalers are on track to spend roughly $725 billion on AI infrastructure in 2026.
- TSMC makes most of the world's advanced AI chips and cannot expand quickly enough to clear the backlog.
- Permit delays and a shortage of construction workers are slowing its US plans, according to Reuters.
That backlog ripples outward. Every new fab cluster pulls in more power, which is why utilities with data center exposure keep showing up in the AI conversation.
What still has to go right for TSM stock
Wei reaffirmed TSMC's target of more than 30% revenue growth for 2026, raised from 25% in January, alongside a 56% gross margin shown in TSMC filings.
The stock has run about 40% higher this year, which leaves little cushion if AI orders cool.
GuruFocus flags the shares as "Significantly overvalued," and Cathie Wood's ARK has been trimming chip positions into the strength.
Patient investors should watch three things:
- Whether 2nm capacity stays sold out,
- If US permitting frees up,
- and whether memory's price spike starts denting demand for the devices that TSMC's chips go into.
However, none of it is guaranteed.
Wei is betting that steady pricing keeps customers loyal long after the shortage fades, while other memory makers are betting the shortage lasts.
Either way, whether Wei's steady pricing or the memory makers' approach wins depends on the orders each side books in the months ahead.
Related: Barclays resets AMD stock price target
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This story was originally published June 5, 2026 at 9:37 AM.