Taiwan Semiconductor Manufacturing Company (TSMC) aims for record profits this year despite tariff risks and currency shifts. Moreover, the company expects revenue to grow around 20%, mainly driven by rising AI chip demand. After the annual meeting on Tuesday, TSMC’s CEO and Chair, C.C. Wei, highlighted growth in the AI chip sector. Wei said, “I’m not afraid of anything – only of a global economic slowdown.” Additionally, he revealed that TSMC is already receiving chip orders for humanoid robots. This clearly shows the company’s confidence in AI as a key growth driver. Furthermore, Wei stressed that AI chip demand still exceeds supply.
As a result, this imbalance supports TSMC’s positive revenue outlook. However, Wei admitted US tariffs indirectly affect TSMC. Specifically, he explained, “Importers pay tariffs, but higher prices can reduce demand.” Nevertheless, he said AI remains a strong growth engine. Recently, Wei discussed capacity expansion with Nvidia CEO Jensen Huang. Together, they aim to meet rising AI chip orders. Moreover, Wei warned that currency risks pose a bigger threat than tariffs. For instance, the New Taiwan dollar recently rose 8%. Consequently, this could cut gross margins by over 3 percentage points. That means billions in lost profit, based on TSMC’s NT$3 trillion (US$100 billion) revenue.
Wei noted, “Every 1% rise in the NT dollar cuts operating margin by 0.4 points.”To counter this, Wei hinted at possible price adjustments. “We will keep delivering world-leading technology at fair value,” he said. However, he did not confirm if prices would rise this year. On global compliance, Wei stressed TSMC’s commitment to US export controls. Therefore, the company vets clients and their downstream buyers carefully. “We look at our clients’ clients’ clients to prevent violations,” he explained. In addition, TSMC plans to continue cooperating with governments worldwide.
Finally, Wei spoke about expansion plans. He said building chipmaking ecosystems takes time. Outside the US, Taiwan, China, Europe, and Japan, no other regions have viable chip clusters. “It’s almost impossible to build that quickly,” he said.In summary, TSMC eyes record profit amid tariff risks and currency challenges. Overall, the company depends heavily on AI chip demand to fuel growth.
