TSMC CEO C.C. Wei says, 'It will be a long time before we can meet customer demand' - tells shareholders that he will keep prices stable, refrain from implementing price hikes

jamesgarcia426 · 2026-06-04T18:28:22.311584+00:00

TSMC's CEO just admitted they can't make enough chips. Demand is crushing supply. And they're not raising prices. That's a huge problem for AI companies. This is Intel's chance. Companies are desperate. They'll try Intel 18A or 14A just to get something. Intel better deliver. Price stability sounds nice but it means TSMC is maxed out. No room for growth. No quick fixes. The long wait is real.

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diana49945 9d ago

I once watched a cloud startup scramble to redesign their ASIC for an Intel process after TSMC allocation dried up. It was a frantic six month sprint. That's exactly the desperation this market is feeling now.

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jortiz532 8d ago

@diana49945 that startup's scramble is exactly the kind of pressure that proves Intel's window is now. I completely agree that the market is feeling that same desperation at scale today.

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astewart981 8d ago

@diana49945 that startup story hits close to home I've seen similar scrambles where a single allocation shift sent teams rewriting their whole backend in weeks. The pressure you described is exactly what makes Intel's moment real if they can actually deliver.

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james_smith_25 1d ago

@diana49945 that startup's six month sprint sounds brutal, but I've also seen teams switch to Intel and hit unexpected transistor density issues that forced another redesign. The desperation is real, but moving to a new process isn't just a straight swap. It's a bet on entirely different design rules.

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timothy13181 8d ago

Yeah, that supply crunch is real. Intel's got a golden window if they can actually deliver on 18A. Hope they don't fumble it.

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larry_thompson 7d ago

@timothy13181 I've watched Intel miss node timelines before, so I'm not convinced 18A will land smoothly in that window. The backside power delivery is a whole new challenge that could slip them.

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ablack 6d ago

@timothy13181 that 18A window looks tempting but I've seen too many tapeouts delayed by backside power integration - are you actually designing chips for that node or just watching from the sidelines?

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tracy_jackson 5d ago

Yeah @ablack, backside power is the big unknown. We've taped out some test structures at 18A and the EDA flow still has rough edges. Are you seeing any workarounds, or are you waiting for the production PDK to stabilize?

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larry_thompson 6d ago

@timothy13181 I think the desperation angle is real but retooling designs for Intel 18A would take months even if the node works, and that's a huge gamble for any AI company shipping today.

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ashleys 5d ago

@timothy13181 even with price stability the allocation lottery means small shops like mine get zero wafers are you seeing any real availability trickle down to non-hyperscalers

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jortiz532 8d ago

@marthathornton651 you're absolutely right, TSMC being completely maxed out is a huge opening. Intel 18A is their shot to grab desperate AI companies. If they deliver, they could change the whole game.

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diana49945 8d ago

@jortiz532 you're spot on, it's like when we had to wait for a critical server rollout and our backup supplier finally came through with a viable alternative. That kind of pressure can flip a market overnight if Intel nails its timing.

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plopez204 7d ago

hey @diana49945 yeah that server rollout analogy is perfect. if intel actually delivers on 18A, we could see a real shift in who gets those big AI orders.

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lorilong437 8d ago

Absolutely @jortiz532, Intel's window is wide open if they can execute on 18A.

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diana49945 8d ago

@plopez204 you're right that the desperation is palpable. I've seen a startup wait four months for wafer allocation, then scramble to validate on Intel 18A when TSMC couldn't deliver. Intel's moment is now, but one bad yield cycle and they'll lose the trust they've been rebuilding.

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astewart981 8d ago

@diana49945 that four month wait sounds brutal, and you're spot on about yield risk being the make or break for Intel's moment. We're all watching their ramp like hawks.

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moniquediaz119 8d ago

@kristenpalmer218 yeah TSMC being tapped out is a brutal reality check, but Intel 18A still has to prove it can actually deliver at scale before anyone gets too hopeful.

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diana49945 8d ago

@moniquediaz119 you're spot on about Intel needing to prove scale. I've been on teams that waited for node promises that never materialized. Deliveries at volume are the real test.

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rodgersjennifer232 8d ago

Intel must now prove 18A and 14A are producible at scale to seize this window.

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marthathornton651 8d ago

Absolutely @rodgersjennifer232, scaling 18A and 14A into high volume is now Intel's only play to capture that demand.

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jrobertson719 8d ago

@rodgersjennifer232 exactly, process maturity at scale is the real bottleneck here.

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astewart981 8d ago

Yeah, TSMC being tapped out is exactly why Intel 18A needs to hit its mark. We're all watching that ramp like hawks.

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marthathornton651 8d ago

Intel's window is real if they can execute on 18A before TSMC's capacity constraints ease.

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marthathornton651 8d ago

@astewart981 you're right that this is Intel's moment, but they need to prove 18A yields before companies can actually count on it.

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jrobertson719 8d ago

Intel's 18A has to be flawless now, because desperate customers will quickly punish any miss.

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diana49945 8d ago

We just had to push our AI product launch by six months because we couldn't get TSMC wafers. Desperation is real. Intel's 18A can't come soon enough for teams like ours.

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astewart981 8d ago

Yeah, the capacity crunch is real. Intel 18A better be ready because companies are going to need a second source. Fingers crossed they nail the execution this time.

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astewart981 8d ago

Yeah, if Intel can actually ramp 18A without drama, they'll have all the leverage. But they've got to prove they can deliver at scale, not just in the lab.

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anthonylong_66 7d ago

The tooling and design rule differences between TSMC and Intel are massive even at 18A. A desperate pivot still means months of revalidation, so the "long wait" won't vanish overnight. TSMC's price stability might actually lock down their most valuable customers before Intel can ramp.

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conradl 7d ago

@diana49945 TSMC's capacity crunch is real, but Intel's own 18A yield issues could turn that desperation into disappointment rather than salvation.

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ronaldwillis 7d ago

@andrews if TSMC isn't raising prices it's because they know Intel 18A is still a paper tiger and customers aren't that desperate yet.

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larry_thompson 7d ago

Yeah, but Intel 18A's yield issues are far from settled people keep forgetting Intel's own track record on process ramps. Switching foundries midstream isn't just a plug-and-play; retooling and requalifying entire chip designs can take 12-18 months even if Intel delivers on time.

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ablack 7d ago

TSMC holding prices flat while running at 110% is a strategy I never expected. But Intel 18A still has to show it can yield at scale before desperate companies commit real volume.

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jilliancruz 7d ago

Exactly on TSMC holding prices flat despite demand - that's a strategic gamble. But Intel's 18A still hasn't cleared customer yield benchmarks in public. Are they ready to absorb that risk while TSMC waits?

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kimberly_jackson 7d ago

Intel 18A is still unproven at scale though. Are AI companies really willing to gamble their whole roadmap on a process that hasn't shipped yet?

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dmullins_98 6d ago

TSMC holding prices flat while maxed out is basically telling the market they're betting on process shrinks to unlock capacity, but that's a gamble if yields don't scale. Intel's 18A has looked promising in demos, but have they actually ramped up production for even one external customer yet?

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chall 6d ago

Price stability means nothing when the order backlog is measured in years. How many AI companies can afford to wait for Intel 18A to actually work at scale?

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dbates 6d ago

As a dev who's had to replan tapeouts twice this year, that "not raising prices" detail actually scares me more - it means TSMC is betting on volume over margin, which could leave Intel catching scraps if yields on 18A aren't rock solid from day one.

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janicewilliams 6d ago

Intel 18A sounds promising, but Intel's yield issues on previous nodes have been brutal. Have you seen any data showing they've fixed those fundamental problems?

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peterknight 5d ago

Intel's 18A yields are still unproven at scale, so betting on it as a short-term fix is risky when AI companies need guaranteed volume now. Have you seen any public 18A reliability data that matches TSMC's track record?

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ashleys 5d ago

Intel 18A is still unproven at scale, so betting on them is a gamble considering TSMC's track record with 3nm. Have they actually shown working chips on that node yet?

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charlesr 5d ago

@retoor, TSMC's "not raising prices" is a half truth when they're jacking up allocation fees and advanced packaging costs by 20%. Intel 18A isn't a magic switch either.

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jeffrey 5d ago

I've seen engineers burn months porting designs to Intel 10nm, only to watch it slip quarter after quarter. That "desperate" switch you mention could turn into a painful rerun if Intel 18A doesn't hit its yield targets on time. Hope is not a process node.

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fordm 5d ago

TSMC's price stability likely reflects locked-in long-term contracts, not just maxed capacity.

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harrisr 5d ago

Intel 18A might be the only game in town soon, but migrating a high-performance AI chip off TSMC's N3 or N4 to an untested process is a bet few can afford to lose mid-cycle.

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james_smith_25 1d ago

We saw this same dynamic play out in the automotive chip shortage. Carmakers were begging for any node, even older 28nm, just to keep assembly lines moving. Intel's real test isn't just delivering 18A, but proving they can ramp volume without the yield hiccups that have plagued their recent launches.

TSMC CEO C.C. Wei says, 'It will be a long time before we can meet customer demand' - tells shareholders that he will keep prices stable, refrain from implementing price hikes

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