• TSMC reports limited impact from U.S. tariffs on its operations.
• Demand for AI technology continues to exceed supply, according to CEO C.C. Wei.
• TSMC collaborates with U.S. officials to discuss tariff implications.
• The company faces geopolitical risks amidst rising tensions with China.
• TSMC has committed $165 billion to expand its operations in the U.S.

Taiwan Semiconductor Manufacturing Company (TSMC) has acknowledged that U.S. tariffs are having some impact on its operations, primarily due to the nature of tariffs affecting importers rather than exporters. CEO C.C. Wei noted that while tariffs may lead to slightly higher prices, the fundamental demand for artificial intelligence (AI) chips remains robust and consistently outpaces supply. "If demand drops, TSMC's business could be affected. But I can assure you that AI demand has always been very strong," Wei stated, reiterating the positive outlook for AI applications this year, according to Channel News Asia, Reuters, and South China Morning Post.

Speaking at the company’s annual shareholders meeting in Hsinchu, Wei emphasized that TSMC has yet to observe significant changes in customer behavior due to tariff-related uncertainties. He added that discussions have occurred with U.S. officials about the tariff impacts, signifying TSMC's proactive approach in navigating these trade challenges. "Tariffs do have some impact on TSMC, but not directly," he explained, according to India Times and South China Morning Post.

Furthermore, TSMC has laid out an extensive plan involving a $165 billion investment to build new factories in the United States, which underscores their commitment to enhancing production capabilities amid fluctuating international trade policies. Wei noted that the company is communicating with U.S. regulatory bodies to ensure compliance with all legal requirements while emphasizing that "the real point is that we are in active communication, because only through understanding can they realize the consequences," as reported by Reuters and India Times.

In light of rising geopolitical tensions in the Taiwan Strait, Wei acknowledged that such risks extend beyond TSMC's control, stating, "If something happens that we don't want to happen, it's a matter for governments, not for TSMC alone." This reflection aligns with concerns about the company's operational challenges in a complicated trade landscape, as noted by Channel News Asia and South China Morning Post.