TSMC has greatly benefitted by partnering with Apple for the past several years, supplying a multitude of chipsets for different products, though the majority of its revenue is contributed by iPhone sales. While the California-based giant will always attempt to secure the initial shipments of its foundry partner’s cutting-edge node, a report states that the company might not be TSMC’s biggest customer this year as demand for AI-related chips and applications starts to pick up exponentially.
Due to spiking AI demand, NVIDIA could top Apple as TSMC’s biggest customer for 2025
Currently, Apple has the crown when it comes to being TSMC’s largest client, with supply chain data compiled by Bloomberg revealing that the iPhone maker accounts for approximately 25.2 percent of its semiconductor manufacturer’s annual revenue. In contrast, NVIDIA contributes around 10.1 percent, but the tables might turn this year. According to Economic Daily News, Citi Securities analysts are optimistic that the graphics chip titan might become the largest customer of TSMC thanks to continued demand for the AI sector.
It is estimated that NVIDIA will account for 20 percent of TSMC’s entire revenue for 2025, but according to Bloomberg’s previous figures, Apple will still have the upper hand. However, the way that percentages work is that if one company is contributing more to a particular aspect, then the other company’s overall points will reduce. Citi Securities analysts also mentioned that there will be strong growth for ASICs specifically designed for AI workloads, allowing TSMC’s financial performance to improve in the next two to three years.
Additionally, most AI chips will utilize various 3nm technologies belonging to TSMC by the end of 2025, which will increase the average selling price of the manufacturer’s wafers, contributing to its profit increase in 2026. While Apple will continue to remain an integral customer of TSMC, the use of the 2nm and 3nm processes will remain limited to its custom silicon that will be used in its products and generative AI servers. Since NVIDIA has a major client list of its own, it will place a higher order volume and potentially surpass Apple as TSMC’s biggest customer.
News Source: Economic Daily News
About the author: Omar Sohail is a reporter and analyst for Wccftech's mobile section, specializing in the technology and business of the mobile industry. His expertise lies in the intricate hardware supply chain, covering developments in semiconductor manufacturing, chip lithography, and camera sensor technology.
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