Potential TSMC Tariff Exemptions Could Impact Microsoft AI Chip Supply

U.S. tariff policy continues to shape Big Tech strategy, and a new report suggests potential relief for companies tied to Taiwan Semiconductor Manufacturing Company.

According to Windows Central, U.S. economic policy remains one of the biggest constraints for major technology firms. The Trump administration’s tariff measures on foreign goods have disrupted supply chains and raised costs across industries.

Report suggests potential tariff exemptions for TSMC

Citing sources familiar with the matter, the Financial Times reports that the U.S. administration may allow TSMC to grant exemptions to specific companies under an updated tariff framework.

The White House reportedly aims to encourage large-scale domestic chip manufacturing. In response, TSMC has pledged up to $165 billion in future U.S. investments. The proposed tariff carve-outs would tie directly to how Taiwan allocates capital toward expanding U.S.-based fabrication facilities.

However, sources say discussions remain in flux. Both the White House and TSMC declined to comment on the matter.

Microsoft’s reliance on TSMC

Microsoft depends heavily on TSMC for its custom AI silicon. The company uses TSMC to manufacture its Maia 100, Maia 200, and Cobalt 100 data center chips, which power its expanding AI infrastructure. Microsoft also confirmed the supply of SK Hynix HBM3e memory for these AI accelerators.

Beyond custom silicon, Microsoft indirectly relies on TSMC for additional chip production tied to its broader cloud ecosystem.

If tariff exemptions materialize, they could ease cost pressures for companies building AI infrastructure at scale. That relief may help stabilize pricing for enterprise cloud services and AI products over time.

While investors may view the report as encouraging, consumers could also benefit if reduced tariff burdens prevent future price increases across AI-driven services and hardware.

Meanwhile, new rumors indicate Microsoft’s next-gen Xbox might adopt a Windows foundation.