US tariffs are having some impact on TSMC's business, but demand for artificial intelligence remains consistently high and continues to outpace supply, CEO CC Wei said at the company's annual shareholders meeting in Hsinchu, Taiwan, Reuters reported.
According to him, TSMC is in talks with the US Department of Commerce about the possible consequences of the tariff policy, in particular due to increased production costs in the US. The company is investing $165 billion in creating new factories in the country, and some of the necessary equipment comes from Asia, which also complicates logistics.
"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. 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," the company's chairman explained. At the same time, he stressed that demand for AI chips remains extremely high.
Wei also noted that he discussed the investment program announced in the spring with US President Donald Trump, and warned that it would be difficult to fully implement it in five years.
TSMC is the world's largest contract semiconductor manufacturer, serving Apple, NVIDIA and other giants. In April, the company gave a positive forecast for the year, thanks to the active growth in demand for AI.