Major tech companies, including Alphabet and Meta Platforms, have not revised plans to invest tens of billions of US dollars in artificial intelligence, or talked about a scaleback
[TAIPEI] Taiwan Semiconductor Manufacturing Company’s (TSMC) quarterly revenue rose a larger-than-anticipated 42 per cent, reflecting strengthening demand for artificial intelligence (AI) servers and smartphones before US tariffs kicked in.
That marked TSMC’s fastest pace of growth since 2022. Electronics manufacturers had stockpiled goods in US warehouses in anticipation of potential trade and shipping disruptions.
The main chipmaker for Apple and Nvidia reported revenue of NT$839.25 billion (S$34 billion) in the first three months of 2025. Analysts on average expected roughly NT$830.5 billion. The company reports full quarterly earnings next week.
Its results coincide with growing concerns about how tariffs may disrupt demand for electronics such as iPhones. Over the weekend, Americans rushed to pick up Apple’s marquee device, fearing it may raise prices to cover the additional cost.
In March, TSMC chief executive officer CC Wei and US President Donald Trump jointly announced an additional US$100 billion investment in US chipmaking, boosting the White House’s goal of bringing manufacturing back home. Trump credited rising tariffs for the extra outlay.
More broadly, there are signs that the pace of spending on data centres and AI chips may be slowing somewhat. Microsoft, for one, has pulled back on projects around the world, suggesting it’s rethinking plans.
Some analysts warned TSMC might have to cut its full-year revenue target for growth in the mid-20 per cent range, reflecting global uncertainty and the potential hit to economies. Its outlook is also overshadowed by Trump’s threats to slap tariffs on semiconductor imports, although it is unclear when or whether that may happen.
Still, TSMC remains the world’s leader in the production of advanced semiconductors used for AI and smartphones. That could cushion the impact of tariffs or trade disruptions.
Major tech companies, including Alphabet and Meta Platforms, have not revised plans to invest tens of billions of US dollars in AI, or talked about a scaleback. Amazon.com alone is aiming to spend US$100 billion on AI this year. BLOOMBERG
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