TSMC Chairman and CEO C.C. Wei identified skilled labor and water shortages in Taiwan as critical constraints on future production capacity. These resource gaps challenge the company’s ability to meet global demand for artificial intelligence and high-performance computing. Wei noted that securing engineering talent and stable water supplies for advanced chip fabrication remains a mounting difficulty.
TSMC shares fell sharply alongside the broader Taiwanese market during the announcement. The decline followed a sell-off in U.S. semiconductor stocks as investors engaged in profit-taking. Market movements reflected global tech sector performance rather than the CEO’s long-term structural warnings.