The production ramp-up at Taiwan Semiconductor Manufacturing Co. is expected to be positive for Taiwanese steelmakers. As semiconductor capacity continues to expand, related construction demand for plants, equipment support, and ancillary facilities is also expected to grow, providing support for steel consumption in Taiwan. The view suggests semiconductor expansion is increasingly seen as a structural positive for the island’s steel demand.

Taiwan Semiconductor Manufacturing Co. (TSM.N) reported October revenue of NT$367.47 billion, up 16.9% YoY, marking the lowest growth rate since February 2024. On average, analysts expected the company's sales to grow 27.4% this quarter. The slowdown in TSMC's revenue growth could be another sign that AI demand is gradually returning to rationality after showing signs of a market bubble. However, TSMC's stock price has risen about 37% since the beginning of the year. As investors grow increasingly concerned about excessive valuations in the tech sector, global tech stocks faced a sell-off last week, with several Wall Street CEOs warning of a long-overdue market correction. Michael Burry, known as the "Big Short," also disclosed a short position in Nvidia through his hedge fund, Scion. Nevertheless, industry executives remain optimistic about AI-driven growth.

Industry insiders revealed that Taiwan Semiconductor Manufacturing Company (TSM.N) has notified its customers that starting in September, it will initiate a four-year consecutive price increase plan for advanced processes below 5 nanometers. The industry describes this as the "first long-term price hike since the AI era." Chip designers pointed out that TSMC's current increase likely signals a gradual reduction in capacity for mature processes of 7 nanometers and above, with AI, servers, and high-performance computing (HPC) applications becoming the primary beneficiaries. External observers noted that TSMC's rare move to implement four consecutive years of price hikes coincides with MediaTek's mention during its earnings call that it "will adjust chip selling prices to reflect costs," and it is expected to trigger the next wave of chip price increases. TSMC did not respond to rumors about the price hike, but market research agencies indicated that, amid prevailing global inflation and rising costs for TSMC's overseas plant construction and production, the company is projected to raise prices for its advanced processes by approximately 5–10% starting in 2026 to maintain high gross margins.