TSMC Warns Chip Supply Chain Tightness to Last for Years, Reaffirms Over 30% Revenue Growth Target for the Year
According to TrendForce's Monitor, at TSMC's annual shareholder meeting held in Hsinchu on Thursday, TSMC's Chairman and CEO C.C. Wei stated that global chip supply will not be able to meet the surging demand for AI in the coming years. Wei noted that even with TSMC expanding its manufacturing capacity in the United States, it still cannot fully satisfy the significant demand from its U.S. customers, and achieving supply-demand balance will take a long time. Despite the supply chain constraints, Wei reiterated TSMC's forecast of over 30% revenue growth for this year. TSMC had raised its full-year sales guidance in April, expecting capital expenditure to trend towards the upper end of the $56 billion forecast range, while the AI-related spending by major global hyperscale cloud service providers is projected to reach a record-breaking $725 billion this year.
Following disappointing performance outlook from customer Broadcom, TSMC's Taipei-listed shares slipped slightly by 1% today, but have surged more than fourfold over the past three years. In response to calls from the industry to share the benefits of the AI boom, Wei reiterated during the meeting that TSMC employees will see their average bonus increase by over 30% this year.
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On October 8, Revolution Medicines (RVMD.O) shares fell 8.1% in afternoon trading to $185.91. RBC Capital Markets stated that the share price decline appeared to be driven by the latest U.S. Food and Drug Administration (FDA) review documents regarding the company's pancreatic cancer drug Rasonque, particularly the disclosure of objective response rate data for specific RAS mutation subgroups. RBC pointed out that overall survival, rather than objective response rate, is a more meaningful indicator of efficacy, and that the sell-off overlooked Rasonque's broad activity across a variety of RAS mutation subgroups. RBC stated: "While we acknowledge that today's share price decline takes place against the backdrop of overall weakness in the biotech sector, we still believe that the market's reaction to the FDA review documents is an overreaction, given that the drug was approved on the basis of highly clinically meaningful efficacy and has received positive feedback from physicians." Including intraday fluctuations, the stock has more than doubled year-to-date. (Note: For the convenience of non-English speakers, Reuters has automatically translated its reports into several other languages. Automated translations may be inaccurate or lack necessary context; Reuters does not guarantee the accuracy of these automated translations and provides them only for reader convenience. Reuters does not accept liability for any damage or loss arising from the use of automated translation features.)
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