TSMC Sees Surging AI Chip Demand Despite US Tariffs Impact

Taiwan Semiconductor Manufacturing Company (TSMC) CEO C.C. Wei confirmed that while U.S. tariffs under President Donald Trump have some impact on prices and could potentially reduce demand, the strong global appetite for AI chips continues to outpace supply. TSMC has committed $165 billion to build new factories in the U.S. to bolster domestic production, although some equipment sourced from Asia may face tariff-related cost increases. Despite geopolitical and trade tensions, TSMC maintains no plans to establish chip plants in the Middle East and remains focused on meeting the growing AI chip demand critical to technology giants like Apple and Nvidia. Critics argue that the 2025 semiconductor tariffs echo the flawed approach of Trump’s earlier tariff policies, which disrupted global supply chains and may inadvertently hinder U.S. innovation and leadership in technology. The complex, interwoven nature of global electronics manufacturing means tariffs can cause inefficiencies and retaliatory trade measures, complicating efforts to reshore production. Strategic partnerships, such as those reportedly forming between TSMC and Intel, may represent more effective means to strengthen domestic semiconductor manufacturing without the economic drawbacks of broad tariffs.