TSMC CEO Expresses Envy for Memory Vendors' 86% Margin, Says AI Demand Will Last Until 2030

Huo Xing Finance reports that on July 16, TSMC released better-than-expected quarterly results and raised its full-year revenue and capital expenditure guidance across the board. Chairman and CEO C.C. Wei stated at the earnings call, “I’m truly envious” of memory manufacturers’ 86% gross margin, and clearly emphasized that AI is an entirely new industry, with strong demand expected to continue through 2030. TSMC’s second-quarter financials showed a net profit of NT$706.6 billion, surpassing the market expectation of NT$623.73 billion; its gross margin stood at 67.7%, also exceeding forecasts. Wei openly admitted that seeing memory companies’ 86% gross margin made him “truly envious,” but he also stressed that as a partner to memory customers, TSMC would not suddenly raise prices drastically and push customers out of the market: “Our customers must succeed. One of my Korean competitors has made a lot of money—honestly, I’m very envious.”