[News] TSMC Reportedly Reaffirms 2025 Sales Growth of 24–26%, Warns Tariffs May Push Up Prices

At its annual shareholders’ meeting on June 3, TSMC Chairman and CEO C.C. Wei addresses concerns about tariff-related risks. As noted by Central News Agency, Wei says that despite ongoing uncertainty and potential impacts from tariff policies, TSMC sees no changes in customer behavior, reaffirming that the company’s U.S. dollar revenue is expected to grow by 24% to 26% this year.

Central News Agency also mentions that, according to Wei, the broader wafer manufacturing 2.0 sector—including foundry, packaging, testing, and photomask services—is expected to grow in 2025, driven by strong AI-related demand and a moderate recovery in other end markets. He adds that TSMC’s growth will continue to outpace the industry average, as noted by Central News Agency.

Strong AI Demand Continues to Drive Growth, Though Tariffs Could Push Up Prices

In addition, Wei says that while tariffs may lead to higher prices and potentially dampen demand, he believes the overall effect is limited—particularly in light of sustained strength in AI-related demand, as highlighted by Commercial Times.

According to Reuters, Wei explains that tariffs do have some effect on TSMC, but the impact is indirect. He notes that since tariffs are applied to importers rather than exporters—and TSMC operates as an exporter—the company is not directly impacted. However, he adds that tariffs can lead to modest price increases, which may, in turn, soften demand.

Wei emphasizes that a drop in demand could potentially affect TSMC’s business. Nonetheless, he reassures that AI-related demand remains exceptionally strong and continues to outpace supply, as Reuters notes.

Regarding potential price increases, Economic Daily News reported in April that, according to market sources, TSMC is considering raising prices for 4nm chip production at its U.S. facility by up to 30%, driven by strong demand and higher operating costs.

In April, TSMC announced consolidated revenue of USD 25.53 billion for the first quarter ended March 31, 2025. For the second quarter, revenue is projected to range between USD 28.4 billion and USD 29.2 billion, with a gross margin of 57% to 59%.

Meanwhile, Wei noted that exchange rate fluctuations have directly impacted revenue, with every 1% appreciation of the NT dollar cutting TSMC’s gross margin by 0.4 percentage points. As the NT dollar has recently strengthened by nearly 8%, TSMC’s gross margin is expected to fall by over 3 percentage points, according to Economic Daily News.

No Plans for Middle East Fab

In response to a shareholder question about potential fab construction in the Middle East, Wei replied unequivocally, “Absolutely not,” making it clear that TSMC has no plans for such an expansion, according to Economic Daily News.

Economic Daily News also refers to earlier rumors suggesting that U.S. officials had encouraged TSMC to invest in Intel’s foundry business. The report points out that Wei had already dismissed those claims during the company’s April earnings call, firmly stating that TSMC has no intention or plan to participate in Intel’s IFS operations.

Read more

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(Photo credit: TSMC)