Taiwan’s TSMC said U.S. tariffs are having some impact on the company, but demand for artificial intelligence (AI) chips remains strong and exceeds supply.
U.S. President Donald Trump’s trade measures have caused uncertainty for TSMC, the leading maker of advanced semiconductors for customers like Apple and Nvidia.
At its shareholders meeting in Hsinchu, Chief Executive C.C. Wei said they have not noticed any shifts in customer behavior; the picture might clear up in the coming months.
“Tariffs do have some impact on TSMC, but not directly. That’s because tariffs are imposed on importers, not exporters. TSMC is an exporter. However, tariffs can lead to slightly higher prices, and when prices go up, demand may go down,” he said. “If demand drops, TSMC’s business could be affected. But I can assure you that AI demand has always been very strong and it’s consistently outpacing supply.”
TSMC sees strong year from AI Demand but struggles to meet chip supply
In April, TSMC gave a positive forecast for the year based on AI demand. Wei said TSMC’s job is to give its customers “enough chips, and we’re working hard on that. ‘Working hard’ means it’s not enough.”
When asked about reports that TSMC is eyeing chip factories in the United Arab Emirates, Wei said the company has no plans. He was also asked about the suspension of shipments to Sophgo, a China-based chip designer, after its chip matched one in a Huawei AI processor, a company under U.S. limits.
Wei said TSMC works closely with the Taiwan and U.S. governments to comply with laws and rules. TSMC also faces political risk as China steps up military pressure on Taiwan, which Beijing sees as “sacred” Chinese territory.
“If something happens that we don’t want to happen, it’s a matter for governments, not for TSMC alone,” Wei said, replying to a question about a possible crisis in the Taiwan Strait.
