Taiwan Semiconductor Manufacturing Company (TSMC) said on Tuesday that US tariffs are having some impact on the company but demand for artificial intelligence (AI) remains strong and continues to outpace supply.

US President Donald Trump’s trade policies have created much uncertainty for the global chip industry and TSMC, the top producer of the world’s most advanced semiconductors whose customers include Apple and Nvidia.

Chief executive officer C. C. Wei, speaking at the company’s annual shareholders meeting in the northern Taiwanese city of Hsinchu on Tuesday, said they have not seen any changes in customer behaviour due to tariff uncertainty and the situation may become clearer in coming months.

“Tariffs do have some impact on TSMC, but not directly. That’s because tariffs are imposed on importers, not exporters. TSMC is an exporter. However, tariffs can lead to slightly higher prices, and when prices go up, demand may go down,” he said.

“If demand drops, TSMC’s business could be affected. But I can assure you that AI demand has always been very strong and it’s consistently outpacing supply.”