TSMC Warns Rising Costs Could Lead to Higher Chip Prices

TSMC, the world’s largest chipmaker, says inflation is raising its operating costs and is not ruling out future price increases, which could impact the cost of AI infrastructure and consumer electronics. In a rare interview, CFO Wendell Huang rejected claims that the AI boom is a bubble and emphasized that demand from hyperscalers remains strong. He also pushed back against the idea that TSMC’s global expansion is driven by geopolitical pressure, insisting that customers — not governments — are behind the push for overseas fabs. Despite expansion in the US, Japan and Germany, TSMC says its most advanced chip production will remain in Taiwan.

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