TSMC Scrambles to Feed AI Chip Hunger—Geopolitics Be Damned

As the AI gold rush sends demand for high-performance chips into orbit, TSMC is grinding through trade wars and political landmines to keep supply flowing. The semiconductor giant’s fabs are running red-hot, but can they outpace the chaos?

Wall Street analysts nod approvingly—nothing like a good shortage to juice those margins. Meanwhile, tech titans sweat over who gets bumped to the back of the queue.

One thing’s clear: in the high-stakes poker game of AI infrastructure, TSMC holds all the chips. For now.

TSMC sees strong year from AI Demand but struggles to meet chip supply

In April, TSMC gave a positive forecast for the year based on AI demand. Wei said TSMC’s job is to give its customers “enough chips, and we’re working hard on that. ‘Working hard’ means it’s not enough.”

When asked about reports that TSMC is eyeing chip factories in the United Arab Emirates, Wei said the company has no plans. He was also asked about the suspension of shipments to Sophgo, a China-based chip designer, after its chip matched one in a Huawei AI processor, a company under U.S. limits.

Wei said TSMC works closely with the Taiwan and U.S. governments to comply with laws and rules. TSMC also faces political risk as China steps up military pressure on Taiwan, which Beijing sees as “sacred” Chinese territory.

“If something happens that we don’t want to happen, it’s a matter for governments, not for TSMC alone,” Wei said, replying to a question about a possible crisis in the Taiwan Strait.

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