TSMC's CEO, C.C. Wei, seems unbothered by Trump's tariffs, maintaining the company's 2025 outlook despite potential impacts on the industry. TSMC's confidence stems from its strong earnings, with a 35.3% year-over-year revenue increase to $25.5 billion in the first quarter. The company expects AI revenue to double this year, driven by strong demand outside of China.
However, TSMC faces challenges in the US market, including difficulties in finding qualified workers in Arizona, which has delayed the timeline for its second factory. The company has also seen surging costs in its US investments, including a $100 billion investment in US manufacturing capacity.
The global chip industry is complex, with production spread across Asia, the US, and other regions. Taiwan and South Korea have emerged as leaders in advanced chip production, while the US struggles to catch up. Trump's tariff policy aims to bring jobs home, but experts question whether the US can produce high-precision chips at scale.
TSMC plans to produce 30% of its two-nanometer chip capacity in Arizona, while maintaining most of its advanced chip production in Taiwan. The company's investments in the US are part of a broader effort to diversify chip production and mitigate risks.
