For years Apple has been seen as one of TSMC’s biggest and most stable customers. The world’s leading foundry was responsible for manufacturing not only the A-series processors used in iPhones and iPads, but also the M-series processors used in some iPad and Mac models. TSMC will also produce the Apple-designed 5G modem chips that will reportedly replace the Snapdragon 5G modems in the iPhone SE 4 and iPhone 17 Slim.
With mathematical calculations, it was found that during the whole of 2024, Apple accounted for 25.2% of TSMC’s annual revenue and Nvidia produced 10.1% of the foundry’s top line, a shift that could soon happen according to analysts at Citi Securities who say demand for artificial intelligence chips could propel Nvidia to the top spot, displacing Apple. Nvidia is estimated to make up 20% of TSMC’s gross capital this year, and that huge year-over-year increase could dwarf Apple’s contribution, leaving Nvidia on top.
Additional, Nvidia has a huge customer list of its own, which means that as its business improves, it should have TSMC make more chip’s. This higher order volume could result in Nvidia taking the title of “TSMC’s top customer” from Apple.
Analysts at Citi Securities also say TSMC will see strong growth over the next two to three years thanks to strong demand for specialized AI-based ASIC (Application-Specific Integrated Circuit) chips. Additionally, most AI chip’s will be manufactured on TSMC’s 3nm node by the end of 2025. This will result in a higher average selling price for TSMC’s silicon wafers this year, contributing to higher profits for the company.
Despite Nvidia’s rapid growth, Apple will continue to be a major customer of TSMC and has reportedly reserved all of the foundry’s 2nm capacity to produce the application processors A20 and A20 Pro which are expected to power the 2026 iPhone 18 series.
TSMC hopes to see its top line grow 20% to 25% this year while maintaining gross margins above 50%.
If this situation prevails, then it is possible that Nvidia’s strong growth will not affect TSMC at all.
Source: myphone.gr
