TSMC chairman upbeat on growth outlook as stock surges over 150%

Taipei, June 4 (CNA) Taiwan Semiconductor Manufacturing Co. (TSMC) Chairman and CEO C.C. Wei (魏哲家) said Thursday the chipmaker delivered a record year in 2025, with its stock more than doubling and cash dividends growing over 30 percent, while expressing confidence that booming demand for artificial intelligence will sustain growth in the years ahead.

Speaking at TSMC's annual shareholders' meeting, Wei said the company's stock climbed from NT$950 (US$30.17) per share at last year's meeting held on June 3, 2025, to NT$2,425 on June 3 this year, a gain of more than 150 percent.

Cash dividends rose from NT$18 last year to at least NT$24 per share, an increase of more than 30 percent, he added.

Revenue and earnings per share both hit all-time highs, Wei told shareholders, adding that he remains highly confident about TSMC's growth trajectory in the years ahead.

TSMC posted record consolidated revenue of NT$3.81 trillion (US$120.98 billion) in 2025, up 31.6 percent from 2024, while full-year diluted EPS jumped 46.4 percent to a record NT$66.25.

Wei attributed the strong performance and outlook to expanding AI applications and said TSMC will continue investing in advanced technologies and production capacity to support customer demand.

On capital expenditure, Wei said 2026 spending is now expected to come in near the upper end of TSMC's projected US$52 billion to US$56 billion range. Asked when spending might plateau, he said simply: "Honestly, I don't know," adding that he sees no indicators warranting a slowdown.

"If shareholders want to buy more shares, please continue," he said.

Addressing concerns that TSMC is falling behind on advanced tooling, Wei clarified that the company has purchased high numerical aperture extreme ultraviolet (High-NA EUV) lithography systems and is using them for R&D, but has yet to deploy them in mass production due to high costs.

"When costs come down and we can fully leverage their benefits, we will introduce them to production," he said.

Wei brushed aside worries about competition from Intel Corp. and Samsung Electronics Co., saying TSMC has never lacked rivals and will keep outperforming them through technology leadership and customer trust.

On billionaire Elon Musk's reported plans to build a large-scale chip facility dubbed "Terafab," Wei offered a brief response: "Best wishes to him."

Wei also reaffirmed TSMC's commitment to employees and shareholders, noting that employee profit-sharing has grown roughly 30 percent annually since 2023 and is set to rise by more than 30 percent again in 2026.

Shareholder dividends will continue on the same upward trajectory, he said, adding that the company's promise that dividend growth will continue to outpace inflation remains unchanged.

Beyond financials, Wei said TSMC must do more to fulfill its social responsibilities. The company consumes nearly 10 percent of Taiwan's electricity and significant land and water resources, while contributing roughly 25 percent of the island's total tax revenue.

Wei also flagged Taiwan's low birth rate as a long-term concern for the industry.

He said he worries there will not be enough engineers and technicians in the future, noting that while TSMC employees have a birth rate roughly five times the national average, the talent shortage could widen over time.