Nvidia Overtakes Apple as TSMC's Biggest Customer

[MacRumors]

Apple has lost its long-held position as TSMC's largest customer in 2026 amid surging demand for AI chips, CNBC reports.

Nvidia is expected to overtake Apple as the single largest source of revenue for TSMC. Analyst estimates suggest Nvidia will generate approximately $33 billion in revenue for TSMC during 2026, representing roughly 22% of the foundry's total revenue, compared with an estimated $27 billion, or about 18%, attributable to Apple. Nvidia chief executive Jensen Huang reportedly confirmed on a recent podcast that the transition has already occurred, saying that Nvidia is now TSMC's largest customer.

Apple has been widely regarded as TSMC's anchor customer for more than a decade. Apple relies on the Taiwanese company to manufacture its custom-designed A-series processors used in the iPhone and iPad, as well as its M-series chips for the Mac and iPad. That relationship has historically given Apple early access to TSMC's most advanced manufacturing technologies and allowed TSMC to justify the enormous capital investments required to develop each new generation of semiconductor process nodes.

The change reflects a rapid expansion in Nvidia's demand, driven by the global build-out of artificial intelligence infrastructure, where its graphics processing units are widely used as accelerators in data centers operated by major cloud service providers.

One key factor behind Nvidia's rising share of TSMC revenue is the nature of the chips it needs. AI accelerators are significantly larger, more complex, and more expensive to manufacture than Apple's A- or M-series chips. They often require leading-edge process nodes, advanced packaging techniques, and higher wafer costs, all of which translate into higher revenue per chip for TSMC. While Apple ships far higher volumes of processors overall, it requires smaller system-on-a-chip designs optimized for power efficiency and consumer devices, resulting in lower manufacturing costs per unit.

TSMC's growing reliance on AI customers could have direct implications for Apple. While it remains one of the foundry's most important customers, it is no longer the primary driver of TSMC's capacity expansion or capital expenditure decisions. Analysts say that Nvidia has effectively taken Apple's place as the scale customer that helps guide development and justify increased investment in each new leading-edge process node.

Article Link: Nvidia Overtakes Apple as TSMC's Biggest Customer

 

[MayaUser]

This is not good for Apple at its scale

 

[DBZmusicboy01]

AI is the absolute worst abomination in Technology History.

 

[t0rqx]

If Apple focused on quality products, they would sell more products and would not be overtaken by NVIDIA.

 

[jayducharme]

When the AI bubble finally bursts, Apple will go back to being Foxconn’s biggest customer. There are only so many AI servers that will be built. But new iDevices appear every year.

 

[RhinoThinks]

This isn't sports.
This really doesn't matter beyond supply chains for Apple. Something that can be addressed multiple ways.

Supply chains aren't really the thing that Apple has shown it is bad at under Cook leadership.

 

[spaxxedout]

Interesting choice not to cover Clawdbot / Moltbot. I assumed it was for a moratorium on AI articles, but this is a counterpoint.

 

[hajime]

Perhaps Apple should go back to Intel so I can triple boot three OS natively on Macs.

 

[120FPS]

If Apple focused on quality products, they would sell more products and would not be overtaken by NVIDIA.

While competition has caught up with Apple, and they will once again have to push the envelope with new redesigns, I don't think the quality is lacking. I may not like some of Apple's choices, but the MBP is a solid machine. The drive for AI is so great that Apple would have to move into that area, or robotics, and push a lot of new products to take the top spot again.

 

[klasma]

If Apple focused on quality products, they would sell more products and would not be overtaken by NVIDIA.

People tend to keep quality products for longer, so I doubt that it would work that way. If the product “just works”, there is little reason to upgrade. So the best strategy for Apple is to keep customers slightly unsatisfied, so that they keep upgrading.

 

[klasma]

There are only so many AI servers that will be built. But new iDevices appear every year.

New, more cost-efficient AI hardware will appear every year as well.

 

[Alameda]

This is not good for Apple at its scale

TSMC sells chips. Apple sells finished goods.

 

[cateye]

This isn't sports.

It absolutely is to many people who visit here. 🤪

 

[MayaUser]

TSMC sells chips. Apple sells finished goods.

Apple needs chips

 

[Nyx1]

Still waiting Apple Newsroom announced we make own fab but i'am copium

 

[TimCooked]

This is a paradigm shift. AI can be a bubble now, but AI is here to stay even after the bubble pops.
Apple needs to figure out how to play their AI strategy to remain relevant.

But Tim is heartbroken and cannot works his ass off right now.

 

[KPOM]

This is not good for Apple at its scale

This isn’t necessarily a “contest” between Apple and NVIDIA. While Apple certainly leveraged its status to get first access to the 4nm and 3nm processes, that was bound to end eventually. Also, Apple reportedly is considering adding Intel Foundries as a supplier, which would reduce its percentage of TSMC’s business even further.

 

[MayaUser]

This isn’t necessarily a “contest” between Apple and NVIDIA. While Apple certainly leveraged its status to get first access to the 4nm and 3nm processes, that was bound to end eventually. Also, Apple reportedly is considering adding Intel Foundries as a supplier, which would reduce its percentage of TSMC’s business even further.

Too bad because this year was even more important since Apple needs their "2nm" and yields will be even lower now since Nvidia thing
Sad so sad...now im sure we will get reports that the next A/M 2nm based devices will be even shorter this year

 

[KPOM]

Too bad because this year was even more important since Apple needs their "2nm" and yields will be even lower now since Nvidia thing
Sad so sad...now im sure we will get reports that the next A/M 2nm devices will be even shorter this year

Apple and NVIDIA don’t directly compete with each other for finished products. It isn’t as if Intel, AMD, or anyone else who “needs” the 2nm capacity is getting those yields either. What’s happening is that prices are increasing, which is rare in the technology industry but has happened before.

 

[t0rqx]

While competition has caught up with Apple, and they will once again have to push the envelope with new redesigns, I don't think the quality is lacking. I may not like some of Apple's choices, but the MBP is a solid machine. The drive for AI is so great that Apple would have to move into that area, or robotics, and push a lot of new products to take the top spot again.

Macbook Pro is solid I agree except for the screens that are made with lot of micro scratches and dents. My cheap HP with OLED does not have this. And I already have purchased over 50 custom Macbook Pro M Max machines over the years.

iPhone 17 Pro discolouration and the electric crackling noise every unit has is inexcusable.

So quality is lower that Android budget phones for sure.

 

[MayaUser]

Apple and NVIDIA don’t directly compete with each other for finished products. It isn’t as if Intel, AMD, or anyone else who “needs” the 2nm capacity is getting those yields either. What’s happening is that prices are increasing, which is rare in the technology industry but has happened before.

im talking that TSMC production is limited....they cant make unlimited chips per year...and now that nvidia takes priority....Apple 2nm iphones and macs will be very hard to meet demands
You can screenshot this , and you will see...limited supply for the next 2nm Apple devices story will start

 

[t0rqx]

People tend to keep quality products for longer, so I doubt that it would work that way. If the product “just works”, there is little reason to upgrade. So the best strategy for Apple is to keep customers slightly unsatisfied, so that they keep upgrading.

This is Apple speaking: We have an open position you might be interested in at our Marketing department.

 

[MayaUser]

Macbook Pro is solid I agree except for the screens that are made with lot of micro scratches and dents. My cheap HP with OLED does not have this. And I already have purchased over 50 custom Macbook Pro M Max machines over the years.

iPhone 17 Pro discolouration and the electric crackling noise every unit has is inexcusable.

So quality is lower that Android budget phones for sure.

My 16" Mbp does not have scratches and dents but my HP does

 

[koil]

Perhaps Apple should go back to Intel so I can triple boot three OS natively on Macs.

Almost possible today depending on which Apple Silicon Mac you have.

https://asahilinux.org/ - "production ready" (ish)
https://github.com/AppleWOA - decidedly less than production ready hehe (as in, no, you can't really use it today, but for some reason someone somewhere is actually dedicating time to attempt to make it happen)

 

[Ja50n]

Nvidia is selling more chips than the world has data centers to house, and there’s increasing resistance against building more. The sales volume is not sustainable.