AI demand helps TSMC weather tariffs

Taiwan’s TSMC said yesterday that US tariffs were having some impact on the company and had been discussed with Washington, but demand for artificial intelligence (AI) remains strong and continues to outpace supply.

- WEN-YEE LEE

US President Donald Trump's trade policies have created much uncertainty for the global chip industry and TSMC, the top producer of the world’s most advanced semiconductors, whose customers include Apple and Nvidia.

Chief Executive C.C. Wei, speaking at TSMC’s annual shareholders meeting in the northern Taiwanese city of Hsinchu, said the company had not seen any changes in customer behaviour due to tariff uncertainty, and the situation might become clearer in 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.