Taiwan Semiconductor Manufacturing (TPE:2330), or TSMC, warned that rising costs of gas and chipmaking materials linked to Middle East tensions could pressure margins and add to broader economic uncertainty, The Nikkei Asian Review reported, citing Chairman and CEO C.C. Wei.
The company said higher prices for components, including memory, may also weigh on demand in price-sensitive consumer segments, even as premium devices remain resilient. Wei said supply chain risks tied to LNG, helium and hydrogen are being closely monitored, though diversified sourcing and inventory buffers should limit operational disruption.
Separately, Wei described both Intel and Tesla as customers as well as competitors, noting no change to the industry's reliance on technology leadership, manufacturing strength and customer trust. He added that tight capacity is driving ongoing fab expansion, with new production planned across Taiwan, the US and Japan through 2028, alongside progress in 2-nanometer and next-generation technologies.
The chipmaker's comments came as it reported a record quarter, with profit rising more than 58% on-year and revenue climbing over 35%, supported by strong demand tied to artificial intelligence, the report added.
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