Excess Manager

👩‍🍳 How we use AI at Tech in Asia, thoughtfully and responsibly.🧔‍♂️ A friendly human may check it before it goes live. More news hereThe CEO of Taiwan Semiconductor Manufacturing Company (TSMC), C.C. Wei, indicated that United States tariffs have some impact, but demand for AI chips remains strong.He made these comments during the company’s annual shareholders meeting in Hsinchu, Taiwan, on June 3, 2025.Wei explained that while tariffs primarily affect importers, they do not directly impact TSMC as an exporter.He noted that these tariffs could lead to higher prices, which might affect demand.Despite this, he said that demand for AI continues to exceed supply.🔗 Source: Reuters🧠 Food for thought1️⃣ AI demand is reshaping semiconductor economics despite tariff headwindsThe semiconductor industry is experiencing unprecedented AI-driven growth that’s overwhelming even significant trade barriers.TSMC reported “extremely robust” demand for AI chips that’s projected to continue for several years, with high-performance computing chip demand expected to triple in 2024 compared to the previous year 1.This explains why TSMC posted a 35.3% year-over-year revenue increase in Q1 despite tariff uncertainties, with AI accelerator revenue expected to double by 2025 2.The broader semiconductor market reflects this AI momentum, with industry projections showing growth from $627 billion in 2024 to $697 billion in 2025, driven primarily by data center build-outs and generative AI applications 3.This growth trajectory suggests a fundamental restructuring of semiconductor demand patterns, with analysts projecting the market could exceed $1 trillion annually by 2030 as AI infrastructure deployment accelerates 4.2️⃣ Tariff impacts ripple through the ecosystem without disrupting AI momentumWhile TSMC’s CEO acknowledges tariffs can lead to higher prices and potentially reduced demand, the complexity of semiconductor supply chains creates indirect rather than direct effects.The Semiconductor Industry Association previously warned that tariffs could decrease U.S. IT market value by $70 billion over 2019-2020 and reduce GDP growth by 0.9%, demonstrating the broad economic implications of trade barriers 5.Despite these warnings, TSMC reports that customers haven’t significantly altered their behavior due to tariff uncertainties, suggesting AI’s strategic importance is overriding short-term cost considerations 2.The disconnect between tariff impacts and continued strong demand highlights how AI has become mission-critical infrastructure rather than a discretionary investment for many companies.This resilience is particularly notable in high-performance computing segments, where TSMC’s capacity utilization remains high despite price pressures that might typically dampen demand in other semiconductor categories 6.3️⃣ Geographic manufacturing diversification emerges as strategic imperativeTSMC is actively expanding its manufacturing footprint beyond Taiwan, with significant investments in the U.S., Japan, and Europe to mitigate geopolitical risks and serve customers globally 2.This expansion represents a fundamental shift for a company that historically concentrated its most advanced manufacturing in Taiwan, reflecting the growing importance of supply chain resilience amid trade tensions.The company’s geographic diversification strategy mirrors broader industry trends, with procurement leaders increasingly focused on developing flexible sourcing strategies to navigate geopolitical risks 4.TSMC’s approach demonstrates how even market leaders must adapt to a changing landscape where manufacturing location has become a strategic consideration alongside technical capabilities.The construction of advanced fabs globally allows TSMC to maintain its technological edge while addressing concerns about geographic concentration that have been highlighted by analysts as a business risk 7.Recent TSMC developments

👩‍🍳 How we use AI at Tech in Asia, thoughtfully and responsibly.🧔‍♂️ A friendly human may check it before it goes live. More news hereTaiwan Semiconductor Manufacturing Co. (TSMC) warned that US tariffs on Taiwanese semiconductors could decrease demand for chips and impact its planned investments in Arizona.The warning was included in a letter dated May 5 to the US Department of Commerce, responding to a US investigation under Section 232 of the Trade Expansion Act of 1962, which may lead to new tariffs on semiconductor imports.TSMC confirmed the letter but did not disclose further details.TSMC said that any new import tariffs should not create uncertainties for ongoing semiconductor projects, including its US$65 billion investment in three wafer fabrication facilities in Arizona.The first facility is operational, the second is nearing completion, and a groundbreaking for the third was recently held.TSMC also announced an additional US$100 billion investment in Arizona, raising its total planned investment to US$165 billion.🔗 Source: Focus Taiwan🧠 Food for thought1️⃣ The paradox of tariffs: undermining the very investments they aim to encourageTSMC’s warning illustrates a key contradiction in current trade policy approaches to semiconductor manufacturing.The company’s planned $165 billion Arizona investment represents one of the largest foreign manufacturing commitments in U.S. history, designed to create domestic chip production capabilities 1.Yet the same administration threatening tariffs on Taiwanese semiconductors is simultaneously celebrating these investments, creating a policy contradiction that puts billions in committed capital at risk.This pattern extends beyond TSMC. South Korea recently announced a $23 billion support package for its semiconductor industry partly in response to U.S. tariff threats 2.The semiconductor industry’s lengthy planning cycles and massive capital requirements make it particularly vulnerable to policy uncertainty, with facilities costing $10-20 billion and requiring 3-5 years from planning to production.2️⃣ Semiconductor supply chains remain stubbornly global despite onshoring effortsTSMC’s letter highlights an uncomfortable reality: despite billions in incentives and investments, many critical semiconductor manufacturing equipment and materials remain unavailable in the U.S

👩‍🍳 How we use AI at Tech in Asia, thoughtfully and responsibly.🧔‍♂️ A friendly human may check it before it goes live. More news hereGlobal semiconductor and tech stocks rose on May 12 after the United States and China agreed to pause most tariffs on each other’s goods.In the US, semiconductor firms saw significant gains in premarket trading. Nvidia increased by 4%, AMD gained 5%, and both Broadcom and Qualcomm climbed around 5%.Marvell Technology, which had delayed an investor day due to economic uncertainties, surged 7.5%.Taiwan Semiconductor Manufacturing Co. (TSMC), the largest chipmaker in the world, experienced a 4% rise in its US-listed shares.European semiconductor companies also benefited, with ASML rising 4.5% and Infineon recording notable increases in early trading.While chips and certain electronics were temporarily exempt from Donald Trump’s tariffs last month, the US has indicated that these products may face duties in the future. This uncertainty has affected major technology companies, especially those with substantial ties to China.On Monday, Apple shares increased by more than 6%. Amazon saw its stock rise over 8%.Chinese tech stocks listed in the US also saw gains