TSMC's Kumamoto plant delay and labor shortages in the U.S. make construction difficult, says Wei Zhejia: Revenue will reach a new high in 2025.

TSMC (TSMC) Chairman Wei Zhejia said at the 6/3 shareholders' meeting that the start of the second fab in Kumamoto, Japan, was delayed due to local traffic congestion, while the expansion plan in Arizona in the United States will continue to advance, and it is expected to inject $100 billion in the next five years. He also admitted that the expansion of factories in the United States faces the challenges of "shortage of skilled workers" and "insufficient local infrastructure conditions", and has told Trump that it is quite difficult to complete the overall construction within five years. Regarding the frequent rumors from the outside world that TSMC will set up a factory in the United Arab Emirates, Wei Zhejia also publicly clarified: "There is no plan at present." However, he also expects revenue to reach a record high this year

Kumamoto No. 1 factory attracts a surge of visitors causing traffic jams, while No. 2 factory's construction is delayed.

According to reports, Wei Zhejia said after the shareholders' meeting that the Kumamoto No. 2 Plant, which was originally scheduled to start construction in December 2024, caused a large influx of people after the opening of the Kumamoto No. 1 Plant, resulting in local traffic congestion. TSMC has also notified the Japanese government to wait until the traffic problem improves.

The Japanese government responded to TSMC's call, promising to strengthen infrastructure to attract foreign investment.

Regarding TSMC's remarks, Japanese government spokesperson Yoshimasa Hayashi also publicly responded, acknowledging that the global economic uncertainty, along with Japan's own infrastructure deficiencies and labor shortages, would deter foreign investment.

He stated that Japan has realized the need to create a more attractive environment for talent and capital, and will continue to cooperate with TSMC to address related challenges. The Kumamoto City Government also responded, stating that they have begun to widen roads and improve the efficiency of the public transportation system, hoping that TSMC will continue to provide support.

The challenge of establishing factories in the United States is significant, using Din Tai Fung as a metaphor for cost issues.

As for the United States, Wei Zhejia reiterated that TSMC will invest $100 billion in expanding its facilities in Arizona over the next five years, and also revealed that the meeting with Trump was quite amicable, with both sides showing high expectations for cooperation.

However, he also candidly stated that the expansion in the United States still faces issues such as "shortage of skilled workers" and "insufficient infrastructure conditions," and has admitted to Trump that completing such a large-scale construction within five years is "quite difficult."

When a shareholder inquired about the cost of setting up factories overseas at the shareholders' meeting, Wei Zhejia humorously replied:

"Anyone who has eaten at Din Tai Fung in the United States knows what I'm talking about, it's not tasty and it's expensive."

The demand for AI chips remains strong, with revenue expected to grow by 24% to 26% this year.

Despite facing geopolitical and supply chain pressures, Wei Zhe-jia emphasized that current demand for AI chips still exceeds supply, especially with high-end customer orders continuously pouring in for NVIDIA ( and others. He also reiterated that TSMC maintains its revenue growth expectations for 2025 at 24% to 26%, consistent with the outlook released during the company's April earnings call.

However, he also warned that the appreciation of the New Taiwan Dollar is putting pressure on the company's gross margin. Nevertheless, TSMC still expects this year's revenue to hit a record high.

Denying the establishment of a factory in the UAE, Wei Zhejia: Because there are no customers.

There are rumors in the outside world that TSMC is considering establishing a factory in the UAE )UAE(, and has even discussed the idea of six factory joint bases "Gigafab" with the Trump team. However, Wei Zhejia also clearly denied this in the meeting, emphasizing that there are currently no customers in the region, and therefore there are no plans to establish a factory.

This article discusses TSMC's delay in Kumamoto, the difficulty in construction due to labor shortages in the United States, and Wei Zhe-jia's statement that revenue will reach a new high in 2025. It first appeared in Chain News ABMedia.