Taiwan Semiconductor Manufacturing Co., Ltd. (TSMC) said on Tuesday that despite the indirect impact of U.S. tariffs on its operations, strong demand for chips in the field of artificial intelligence (AI) remains strong and demand continues to exceed supply capacity.

U.S. trade policies have brought many uncertainties to the global chip industry, and TSMC, as the world's leading advanced semiconductor chip manufacturer, has a customer base that includes well-known companies such as Apple (AAPL) and Nvidia (NVDA).

At the annual shareholders' meeting held in Hsinchu, Taiwan, TSMC CEO Wei Zhejia said that no significant changes in customer behavior due to tariff uncertainties have been observed so far, and the relevant situation is expected to gradually become clear in the coming months.

"Tariffs do have some indirect impact on TSMC, because tariffs are mainly aimed at importers rather than exporters, and TSMC is an exporter. However, tariffs may cause a slight increase in product prices, which in turn affects demand." Wei Zhejia pointed out, "If demand falls, TSMC's business may be affected to a certain extent. But what is certain is that the demand for chips in the field of artificial intelligence has been very strong and continues to exceed supply."

In April this year, as the world's largest chip foundry, TSMC was optimistic about its business prospects this year due to strong demand for artificial intelligence applications.

Wei Zhejia also mentioned that TSMC's current task is to provide customers with enough chips, and the company is doing its best to meet this demand. "Going all out" also means that the current supply is still difficult to fully meet market demand.

When asked about media reports that related companies are building chip factories in the United Arab Emirates, Wei Zhejia said that TSMC currently has no plans to build such factories in the Middle East.

In addition, Wei Zhejia also responded to questions about TSMC's suspension of shipments to Sophgo, a chip design company headquartered in China. He noted that the company has been working closely with the Taiwanese and U.S. governments to ensure compliance with relevant laws, regulations and regulatory requirements.

TSMC also faces broader political risks, as China increases military pressure on Taiwan, which Beijing considers "sacred and inviolable" territory.

Asked about a possible crisis in the Taiwan Strait, Wei said: "If something we don't want to see happens, it will be a problem that needs to be resolved between governments, not something TSMC alone can deal with."