TSMC CEO Tells Trump $100 Billion US Chip Expansion Will 'Take Time' Amid Tariff Pressures, Surging AI Demand

Taiwan Semiconductor Manufacturing Company Limited TSM CEO C.C. Wei revealed during Tuesday’s shareholder meeting that he informed President Donald Trump that establishing a proposed $100 billion U.S. manufacturing venture will “take time,” beyond the anticipated timeline.

What Happened: Wei disclosed that TSMC has maintained ongoing dialogue with the U.S. Commerce Department regarding Trump’s semiconductor tariffs since their implementation, reported Baha Breaking News.

The CEO expressed concerns that higher duties would elevate TSMC’s U.S. production costs, though he emphasized that tariff policies remain “ultimately a matter between governments, not between a government and a company.”

Despite tariff headwinds, Wei assured investors that artificial intelligence chip demand continues to substantially outpace supply capabilities.

Why It Matters: The CEO explained that while tariffs don’t directly impact TSMC as an exporter, they create indirect pressure through higher import costs for customers. “Tariffs can lead to slightly higher prices and when prices go up, demand may go down,” Wei noted.

TSMC’s cautious stance on U.S. expansion comes as the chipmaker weighs the massive $100 billion investment over four years to build advanced manufacturing facilities stateside. The company has already committed over $65 billion to Arizona fabrication plants for advanced chip production.

Price Action: TSMC closed at $194.84 on June 2, up 0.79%. After hours, it rose 0.24% to $195.30. Year to date, the stock is down 3.34%.

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