TSMC CEO Says Choosing a Chip Foundry Is Not Like “Buying Milk” as Competition With Samsung and Intel Heats Up
TSMC CEO Dr. C.C. Wei has pushed back against the idea that semiconductor customers can quickly switch between advanced chip manufacturing partners based only on available production capacity. Speaking during TSMC’s second-quarter earnings call in Taiwan, Wei said selecting a foundry and ramping up a new manufacturing process is a long, complex partnership rather than a simple purchasing decision.
His comments came as investors and analysts focused on the rising competition in the global semiconductor foundry market, especially from Samsung Foundry and Intel Foundry. With demand for advanced chips surging due to artificial intelligence, high-performance computing, smartphones, and data center hardware, the race to secure cutting-edge manufacturing capacity has become more intense than ever.
During the call, Morgan Stanley analyst Charlie Chan asked TSMC management about capacity expansion in the industry, particularly after ASML discussed plans to increase production of its low numerical aperture extreme ultraviolet lithography machines. These EUV systems are essential for producing some of the world’s most advanced chips and are already used in high-volume semiconductor manufacturing.
ASML’s management recently indicated that demand for its low NA EUV equipment remains extremely strong, with production capacity expected to rise by around 30%. That expansion raised questions about whether TSMC’s rivals could use increased access to advanced equipment to catch up in leading-edge chip production.
Wei responded by making it clear that semiconductor manufacturing is not simply a matter of buying machines and instantly competing at the highest level. He explained that customers such as major chip designers must work closely with a foundry for years before a new process technology can be fully tested, optimized, and scaled for mass production.
According to Wei, choosing a technology node and ramping it into production is not like walking into a convenience store and buying milk. He said customers need to understand the technology, build and evaluate test chips, collaborate closely with the foundry, prepare capacity, and then gradually move into volume production. That entire process can take around five years.
The message was clear: in advanced semiconductor manufacturing, trust, engineering experience, process maturity, and long-term collaboration matter just as much as factory capacity.
The conversation also touched on TSMC’s competition with Intel and Samsung. Intel has been receiving strong support from the U.S. government as it works to expand its foundry ambitions and regain leadership in advanced chipmaking. Wei noted that TSMC has also received government support, even if the company does not always publicize it.
Samsung Foundry was another key part of the discussion. Wei acknowledged that Samsung is making a significant amount of money from its foundry business and jokingly admitted that he was jealous. However, he emphasized that financial strength alone does not determine leadership in the semiconductor foundry industry.
For TSMC, the foundation of long-term success remains customer trust and technology leadership. The company continues to dominate the advanced foundry market, serving major customers in artificial intelligence chips, consumer electronics, GPUs, CPUs, and networking hardware. Its ability to deliver high yields, reliable production, and steady process improvements has helped it maintain a leading position even as rivals invest heavily.
The broader semiconductor market is entering a crucial phase. Demand for AI accelerators and advanced processors is pushing foundries to expand capacity, while next-generation lithography tools such as high NA EUV machines are expected to shape the future of chip manufacturing. Intel has already begun installing one of the first commercial high NA EUV tools as part of its push to advance Moore’s Law and produce chips with smaller, more powerful transistors.
Still, Wei’s comments highlight a key reality of the chip industry: advanced semiconductor manufacturing cannot be rushed. Even with access to the same equipment, companies need years of process development, customer collaboration, yield improvement, and ecosystem support to compete at the leading edge.
As Samsung, Intel, and other players increase their investments, TSMC appears confident that its long-standing customer relationships and deep manufacturing expertise will continue to give it an advantage. In a market driven by AI growth and demand for faster, more efficient chips, the battle among the world’s top foundries is only becoming more important.
