TSMC announced that it will achieve its highest revenue in its history by expanding its semiconductor production capacity to meet the demand for artificial intelligence (AI) technology.
TSMC's CEO C.C. Wei noted at the annual shareholders' meeting on 3rd that U.S. tariffs have had some indirect effects on the company, but the AI business is "very strong."
Wei acknowledged that rising prices due to tariffs and a decrease in chip demand could impact TSMC's business. However, he emphasized, "Our business will still be very good."
Wei said that backed by strong AI demand, "This year, revenue and profits will hit all-time highs." He also emphasized that the company is "trying to increase production capacity to ensure customer satisfaction" in the face of very high AI demand.
However, he denied reports from Bloomberg stating that TSMC would build a manufacturing plant in the United Arab Emirates. TSMC is under pressure to transfer more production from Taiwan, where most of its manufacturing plants are located, due to concerns over China.
China claims that Taiwan is part of its territory and threatens to use force to control Taiwan. In response, TSMC has recently begun constructing plants in the U.S., Europe, and Japan.
Wei added, "I am not afraid of anything, only afraid that the global economy will decline."
U.S. President Donald Trump has mentioned TSMC several times, alleging that Taiwan is stealing the U.S. semiconductor industry.
However, TSMC expects that its plan to invest an additional $100 billion in the U.S. will minimize the damage from Trump's tariffs.
President Trump suspended tariffs of 32% on Taiwan for 90 days, and semiconductor products were temporarily excluded from tariff imposition. However, the Trump administration has kept the possibility of imposing tariffs open as it began national security-related investigations into the semiconductor industry.