HSINCHU, Taiwan (Reuters) -U.S. tariffs are having some impact but demand for artificial intelligence (AI) remains strong and continues to outpace supply, the chief executive of Taiwanese chipmaker TSMC said on Tuesday.

U.S. President Donald Trump's trade policies have created much uncertainty for the global chip industry and TSMC, the top producer of the world's most advanced semiconductors whose customers include Apple ( AAPL ) and Nvidia ( NVDA ).

C.C. Wei, speaking at the company's annual shareholders meeting in the northern Taiwanese city of Hsinchu, said they have not seen any changes in customer behaviour due to tariff uncertainty and the situation may become clearer in coming months.

"Tariffs do have some impact on TSMC, but not directly. That's because tariffs are imposed on importers, not exporters. TSMC is an exporter. However, tariffs can lead to slightly higher prices, and when prices go up, demand may go down," he said.

"If demand drops, TSMC's business could be affected. But I can assure you that AI demand has always been very strong and it's consistently outpacing supply."

In April, the company, the world's largest contract chipmaker, gave a bullish outlook for the year on robust demand for AI applications.

In a sign of the strength of demand, Wei said TSMC's job is to provide its customers "with enough chips, and we're working hard on that. 'Working hard' means it's still not enough."

Wei also commented on media reports that the company has been evaluating building chip factories in the United Arab Emirates, saying they have no plans for any such plants in the Middle East.