TSMC Navigates Tariff Uncertainty, Maintains Positive Growth Outlook

TSMC reported a 60% year-on-year surge in first-quarter profits and maintained an optimistic outlook for 2025, projecting sales growth of 24-26% despite uncertainties from the Trump administration's shifting tariff policies. The company's leadership noted that while U.S. tariffs create risks, customer behavior has not changed significantly, and strong demand—particularly for high-end chips used in artificial intelligence—continues to drive growth. Analysts attribute some of TSMC's strong results to customers stockpiling chips in anticipation of possible trade disruptions, though the company remains cautious about potential future impacts. Experts in asset management and market analysis highlight that TSMC's robust order book and growth prospects stand out even as other semiconductor firms, like ASML and Nvidia, face challenges from U.S. trade restrictions. TSMC expects demand for AI-related chips, such as GPUs and ASICs, to double in 2025, outpacing the broader wafer foundry industry. Overall, while tariff uncertainty looms, TSMC appears well-positioned amidst global trends favoring advanced technology components.