TSMC CEO Says AI Chip Demand Still Higher Than Supply Despite Tariffs

Despite some effects from US tariffs, demand for artificial intelligence (AI) chips remains stronger than supply, according to TSMC CEO C.C. Wei. Speaking at the company’s annual shareholder meeting in Hsinchu, Taiwan, Wei explained that while tariffs may slightly impact business, they don’t directly affect TSMC since it is an exporter.

However, he added that tariffs could raise prices for importers, which may lead to reduced demand in the long run. Even so, the global hunger for AI chips is so strong that TSMC is still struggling to meet customer needs. TSMC, the world’s leading contract chipmaker and supplier to tech giants like Apple and Nvidia, recently gave a positive forecast for the year, driven by the booming AI sector.

Wei emphasized that the company is doing everything it can to keep up with this high demand, stating that “working hard” means there is still a supply gap.

He also addressed rumors about TSMC exploring factory plans in the United Arab Emirates, clarifying that there are no current intentions to build chip plants in the Middle East. The company remains focused on supporting AI growth and meeting the increasing demands of its global clients.

Source: The Economic Times