Taiwan Semiconductor Manufacturing Company is the world’s largest contract maker of chips, which have become the lifeblood of the global economy, powering everything from smartphones to missiles.

TSMC’s half-year revenue increased 40% to NT$1.77 trillion from a year earlier, the company, whose clients include tech giants Nvidia and Apple, said in a statement.

Chairman and chief executive CC Wei told a recent briefing that TSMC expected to see record earnings this year, as artificial intelligence demand would remain “very strong”.

The company’s sales surged in recent months after US President Donald Trump’s global tariff blitz spurred companies to stock up, owing to fears that higher levies were in the pipeline.

Wei told shareholders in June that TSMC’s business “may be affected” if tariffs force up prices and demand for chips falls, but he added: “Our business will still be very good.”

Taiwan’s government said yesterday it has yet to receive a letter on the tariff it would face from the US, as its delegation is currently negotiating in Washington.

Neighbouring Japan and South Korea are among more than 20 countries receiving letters this week from Trump warning of “reciprocal” tariffs from Aug 1.

Taipei has sought to avoid Trump’s threatened levies by pledging increased investment in the US, more purchases of US energy and greater defence spending.