Taiwan Semiconductor Manufacturing Company's chief executive warned that global chip supply will be unable to meet surging demand driven by artificial intelligence applications for several years, according to recent statements by the company leader.

The TSMC CEO indicated the company is considering raising chip prices amid the supply-demand imbalance. The world's largest contract chipmaker has been grappling with unprecedented demand for advanced semiconductors needed for AI computing and data center applications.

The semiconductor industry has experienced dramatic shifts as companies across sectors rush to secure chip supply for AI infrastructure. Major technology firms have been competing for limited production capacity at leading foundries like TSMC, which produces chips for companies including Apple, Nvidia, and other major technology manufacturers.

TSMC's assessment reflects broader challenges facing the semiconductor industry as AI adoption accelerates across industries. The company's advanced manufacturing processes are critical for producing the most sophisticated chips required for AI workloads, creating bottlenecks in global supply chains.

The potential price increases would affect a wide range of technology products, as TSMC's chips power everything from smartphones to data center servers. Industry analysts have noted that semiconductor pricing has become a key factor in the economics of AI development and deployment as demand continues to outpace production capacity.