Taiwan Semiconductor Manufacturing Company (TSMC) finds itself at the centre of a perfect storm: unprecedented AI chip demand that it cannot fully satisfy, escalating trade tensions that threaten its business model, and geopolitical risks that expose the fragility of global semiconductor supply chains.
Speaking at TSMC’s annual shareholders meeting in Hsinchu on Tuesday, CEO C.C. Wei delivered a confident outlook for the semiconductor giant, stating that “our revenue and profit this year will set new historical highs.”
The bullish projection comes as the company grapples with the indirect effects of US tariffs while simultaneously struggling to meet unprecedented demand for AI applications.
Tariff impact remains manageable despite industry concerns
Wei addressed growing concerns about the impact of President Donald Trump’s trade policies on the global chip industry, acknowledging that tariffs do affect TSMC, though not directly.
“Tariffs are imposed on importers, not exporters. TSMC is an exporter,” Wei explained to shareholders. “However, tariffs can lead to slightly higher prices, and when prices go up, demand may go down.”
He emphasized that while TSMC’s business could be affected if tariffs force up prices and reduce overall chip demand, the company’s position remains strong. “Our business will still be very good,” Wei stated, adding, “I am not afraid of anything, I am only afraid that the world economy will decline.”
Trump’s sweeping tariff policies have created significant uncertainty across the semiconductor sector. The administration initially imposed a 32% duty on imports from Taiwan as part of broader trade measures, though these were later pausedfor 90 days