The CEO of Taiwan Semiconductor Manufacturing Co. (NYSE:TSM), C.C. Wei, issued a warning over manufacturing capacity constraints and signaled openness to future price hikes. During the Thursday pre-market trading session, the stock fell 2.08%.

Wei’s comments were made during TSMC’s annual shareholders’ meeting in Hsinchu, Taiwan, on Thursday, Reuters reported. Despite the rising costs of components, he noted that customers remain positive about the future of artificial intelligence.

On the topic of potential price increases, Wei stated, “I’d like to do that … we still need to make money.” He emphasized that the company has no intention of “suddenly” raising prices and remains focused on long-term, sustainable growth. “We’re not that kind of company,” the CEO said. Wei also pointed out the growing use of AI models in consumer, enterprise, and sovereign AI applications. He said growing demand is increasing the need for computing power and advanced semiconductor chips, but acknowledged that production capacity remains limited despite the company’s efforts to keep up.

However, the Taiwanese company said that fully satisfying U.S. customers through domestic production will take a “very long time” due to capacity constraints.

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Jensen Huang ...