Taiwan Semiconductor Manufacturing Co. (NYSE:TSM) CEO C.C. Wei offered a measured but confident outlook on Tuesday, acknowledging that U.S. trade tariffs are having a marginal impact—but reaffirming that robust demand for AI chips continues to outweigh those risks.
Tariffs Have Indirect Effects, But AI Is the Equalizer
Speaking at the firm’s annual shareholder meeting, Wei clarified that while TSMC is an exporter and not directly affected by U.S. tariffs, the indirect effects on pricing and demand still pose minor headwinds:
“Tariffs can lead to slightly higher prices, and when prices go up, demand may go down… But I can assure you that AI demand has always been very strong and it’s consistently outpacing supply.”
He emphasized that no major changes in customer behavior had been observed so far, though he expected more clarity in the months ahead.
Strong Earnings and Strategic U.S. Investment
TSMC recently posted strong Q1 earnings and maintains a bullish multi-year forecast, largely driven by its dominance in the AI semiconductor supply chain. As the leading contract chipmaker, TSMC supplies giants like:
-
Nvidia (NASDAQ:NVDA)
-
Apple (NASDAQ:AAPL)
-
Other leading U.S. tech firms expanding AI infrastructure
To reinforce its global positioning, TSMC has committed over $165 billion to U.S. chipmaking expansion, a strategic move aimed at:
-
Reducing geopolitical exposure
-
Meeting localized production needs for American clients
-
Benefiting from U.S. subsidies and incentives
Data-Driven Insights on TSMC’s Outlook
For those monitoring chip industry fundamentals, the Key Metrics (TTM) API provides detailed operational data, while the Revenue Product Segmentation API offers insights into how AI-related segments are influencing TSMC’s top-line growth.
Wei’s comments underline a broader market trend: while geopolitical and tariff-related risks persist, AI-driven demand continues to drive long-term momentum for global chipmakers.
