Taiwan Semiconductor Manufacturing Co. (NYSE:TSM) CEO C.C. Wei shared a measured but optimistic vision on Tuesday, acknowledging minor impacts from U.S. trade tariffs while confirming that strong demand for AI chips continues to outweigh these risks.

Impact of Tariffs vs AI Demand

During the firm’s annual shareholder meeting, Wei clarified that while TSMC is an exporter and not directly impacted by U.S. tariffs, the indirect effects on pricing and demand do pose some challenges:

Tariffs may lead to slight price increases, affecting demand. However, I assure you that AI demand remains strong and consistently outpaces supply.

He noted the absence of significant changes in customer behavior so far but anticipates greater clarity in the upcoming months.

Strong Earnings and U.S. Investment Plans

TSMC reported strong Q1 earnings and maintains an optimistic forecast thanks to its leadership in the AI semiconductor supply chain. As a leading contract chipmaker, TSMC supplies major companies such as:

• Nvidia (NASDAQ:NVDA)

• Apple (NASDAQ:AAPL)

• Various prominent U.S. tech firms expanding their AI infrastructure

To strengthen its global influence, TSMC has pledged over $165 billion for expanding its U.S. chipmaking operations as a strategic measure to:

• Minimize geopolitical risks

• Address local production needs for American clients

• Take advantage of U.S. subsidies and incentives

Monitoring TSMC’s Industry Performance

For insights into chip industry fundamentals, utilizing the Key Metrics (TTM) API provides operational data while the Revenue Product Segmentation API reveals how AI-focused segments influence TSMC’s revenue growth.

Wei’s statements reflect a broader market trend: although geopolitical and tariff risks persist, AI-driven demand continues propelling growth for semiconductor companies worldwide.