TSMC, the world’s largest contract chipmaker, is buzzing with activity thanks to a surge in demand for AI chips. While Nvidia’s GPUs grab a lot of attention, TSMC confidently serves up both graphics processing units (GPUs) and application‑specific integrated circuits (ASICs) to power the next wave of tech innovation. At a recent shareholder meeting in Hsinchu, CEO CC Wei noted, “I look left and right, and no matter how I look at it, the orders are all from TSMC.”
The company enjoyed an impressive 42% jump in first‑quarter revenue compared to last year, marking its fastest growth since 2022. Yet, amid this rapid expansion, Wei remains cautious about a potential global economic slowdown and the broader implications of international trade tariffs. He explained that while tariffs do affect the market by increasing costs on imports, their indirect nature means TSMC isn’t hit as hard—though rising inflation could eventually dampen demand.
Undeterred, TSMC is pushing forward as demand for AI chips continues to outstrip supply. In a bold strategic move, the company has announced a $100 billion investment to boost chip production in the US, signalling a major step in expanding its global footprint. With revenue growth anticipated in the mid‑20% range this year, TSMC is on track for record profits, even as the strengthening Taiwan dollar and tariff-related challenges press on margins.
Nvidia’s recent first‑quarter performance has also underscored the tech sector’s appetite for AI, consistently beating Wall Street forecasts despite US export restrictions on certain Chinese chip sales. While Nvidia’s stock has rallied—climbing over 5% this year with a 25% surge in the past month—TSMC’s share price has felt the pinch, falling roughly 8% in Taiwan due to broader economic and tariff concerns.
