Taiwan Semiconductor Manufacturing Company (TSMC) (NYSE:TSM) chief said that though U.S. tariffs have some impact on the company, the demand for its AI chips continues to outweigh supply.
TSMC Chief Executive and Chairman Dr. C.C. Wei said that they have not seen any changes in customer behavior due to tariff uncertainty as he spoke at the company’s annual shareholders meeting in Hsinchu County, Taiwan.
“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,” Wei said, according to a Reuters report.
“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.” he added.
Despite trade policy challenges that could result in higher prices for imported goods and possibly dent chip demand from TSMC’s customers, the world’s largest chipmaker has not observed any significant changes in customer purchasing patterns and expects the situation to become clearer in the coming months.
The chipmaker gave strong Q1 results in April and gave a positive outlook for the coming years.
“We continue to observe robust AI related demand from our customers throughout 2025. We reaffirm our revenue from AI accelerators to double in 2025,” said Wei on the earnings call.
When asked about media reports about the company looking at building chip factory in the UAE, Wei said that the company has no plans to develop any chip manufacturing in the Middle East.
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