C.C. Wei, the CEO of Taiwan Semiconductor Manufacturing Company (TSMC), stated that although US tariffs are having an effect, there is still a high demand for AI chips.

He said these things on June 3, 2025, during the company's annual investors meeting in Hsinchu, Taiwan. Wei clarified that although importers are the main target of tariffs, TSMC is not directly impacted as an exporter.

He pointed out that these tariffs might raise prices, which could impact demand. Wei’s comments come after the world’s biggest chipmaker clocked strong first-quarter earnings in April and flagged a positive outlook for the coming years. 

According to Reuters, the company is the world’s largest contract chipmaker, and saw a sharp increase in demand over the past two years as increased AI development demanded more advanced chips.

TSMC is a key supplier to AI major Nvidia, as well as several of Wall Street’s tech majors, including Apple Inc. The company has benefited greatly from major tech firms racing to build out more AI infrastructure. 

TSMC is also building more chipmaking capacity in the U.S. and has committed $165 billion to the country.

What are the Reasons?

The updated U.S. tariffs are a component of a larger economic plan to promote domestic chip manufacturing and lessen reliance on Chinese technology.  By increasing operating expenses and altering international price structures, these tariffs may have an indirect impact on businesses like TSMC.  Furthermore, TSMC's profit margins have been adversely affected by currency changes, particularly the strengthening of the Taiwan dollar, by over three percentage points.

TSMC's $165 billion investment in the U.S.-based chip production facilities, which aims to expand its global presence, is another important reason.  This investment increases the U.S. market's regulatory and cost-related difficulties.

Demand for Resilience in AI

C.C. Wei, the CEO of TSMC, said that despite these challenges, demand for AI chips is still "stronger than expected," mostly because of the competition among multinational tech companies to create more potent AI models and infrastructure. Despite trade tensions and financial pressure, TSMC is finding it difficult to meet this demand, indicating a positive long-term prognosis in the AI field.