TSMC did hike prices the moment they were able. If they can maintain and extend their lead, they will hike them further. Because they can.
I am sure they will frame this as a win-win. Victors always do.
Seems pretty clear to me that the comment you're replying to is talking about short-term profit maximization, and not "profit seeking" in general.
The argument is that excessive short-term profit maximization hurts you in the long run by driving your customers to look for alternatives. Which you'll notice only makes sense as an argument if you do care about profits.
And I agree that it's debatable whether this is specifically a Western failing or not, but it's sure become a common approach over at least the last few decades in the US of A.
Increasing prices seems fairly safe for TSMC though as long as they keep their technological edge and are ready to lower prices again once a viable competitor emerges.