Taiwanese chip titan TSMC said Tuesday that it expected to see record earnings this year as it increased semiconductor production capacity to meet soaring demand for AI technology.
Taiwan Semiconductor Manufacturing Company is the world’s largest contract chipmaker and counts Nvidia and Apple among its clients.
While US tariffs have had “some” indirect impact on the firm, chairman and chief executive CC Wei said the artificial intelligence business would remain “very strong”.
“Our revenue and profit this year will set new historical highs,” he told the company’s annual shareholders meeting.
With AI demand “very high”, the company was trying to “increase production capacity to satisfy our customers”, Wei said.
But he denied reports that the company was planning to build factories in the Middle East.
See also: Taiwan chipmaker TSMC says net profit rose 57% in 4th quarter
TSMC has been under pressure for years to move more of its production away from Taiwan, where the bulk of its fabrication plants are located, amid worries about China.
Beijing claims the island is part of its territory and has threatened to use force to bring it under its control.
The chip firm has in recent years broken ground for plants in the United States, Europe and Japan.
Bloomberg News, citing unnamed sources, reported last week that it was considering building an advanced facility in the United Arab Emirates.
“I think rumours are really flying everywhere,” Wei said.
TSMC last month reported sales of NT$349.6 billion (US$11.6 billion) for April, a rise of 48.1 percent from a year earlier and up 22.2 percent from March.
The surge came after US President Donald Trump’s global tariff blitz spurred companies to stock up, owing to fears that higher levies were in the pipeline.
Wei told shareholders that TSMC’s business “may be affected” if tariffs force up prices and demand for chips falls, but he added: “Our business will still be very good.”
“I am not afraid of anything, I am only afraid that the world economy will decline,” he added.
TSMC has been in the crosshairs of Trump, who has accused Taiwan of stealing the US chip industry.
There had been hopes TSMC’s plan to invest an additional US$100 billion in the United States would shield Taiwan from new tariffs.
Trump still imposed a 32 percent duty on imports from the island as part of his sweeping tariffs — which were later paused for 90 days — but excluded semiconductors.
Washington has launched “national security” probes into the sector, which could pave the way for levies on chips and chipmaking equipment.
