TSMC, Taiwan’s top chipmaker, has discussed US tariffs with the Washington government, but its impact on the company is limited due to its export-oriented business model. The company’s CEO, C.C. Wei, stated that US President Donald Trump’s trade policies have created uncertainty for the global chip industry.
However, demand for artificial intelligence (AI) applications remains robust and continues to outpace supply, according to Wei. Despite this, tariffs do affect TSMC’s prices, leading to potential decreases in demand. The company is committed to its AI business and sees significant opportunities despite the challenges posed by US trade policies.
TSMC has no plans to build chip factories in the Middle East due to a lack of customers in the region. The company is also under pressure from the recent appreciation of the Taiwan dollar, which reduced its gross margin by more than 3 percentage points.
The geopolitical tensions between China and Taiwan pose another challenge for TSMC. If something happens that we don’t want to happen, it’s a matter for governments, not for TSMC alone,” Wei said.
In summary, while US tariffs have an impact on TSMC, the company remains committed to its AI business and sees strong demand despite the challenges posed by trade policies.
Source: https://www.reuters.com/sustainability/climate-energy/tsmc-says-tariffs-have-some-impact-ai-demand-robust-2025-06-03