Apple’s Grip on TSMC Loosens as NVIDIA’s AI Boom Redefines 2025 Revenue Landscape

Throughout 2024, Apple remained the undisputed leader among TSMC’s customers, accounting for a remarkable 24 percent of the semiconductor manufacturer’s total revenue. This dominance was the direct result of Apple’s continuous demand for cutting-edge silicon used in iPhones, Macs, and custom chips such as the M-series.

However, this long-standing dynamic could shift dramatically in 2025, as a powerful surge in High Performance Computing (HPC) and AI chip orders threatens to dethrone Apple from its top spot.

For over a decade, the partnership between TSMC and Apple has been one of the most mutually beneficial alliances in the tech world. Apple’s hunger for innovation pushed TSMC to advance rapidly – from 7nm to 5nm, and now to 3nm and beyond. In return, Apple gained exclusive access to the most advanced manufacturing processes, giving its products an undeniable performance edge. Reports from DigiTimes note that Apple even secured over half of TSMC’s initial 2nm production capacity for upcoming chipsets, reinforcing just how integral this partnership has been for both companies.

But change is coming fast. Data from TSMC’s 2025 second-quarter results reveal that HPC orders now contribute an impressive 60 percent of the company’s total revenue – surpassing smartphone chipsets by a wide margin. Behind this surge stands NVIDIA, whose appetite for AI GPUs and server-grade chips has consumed more than half of TSMC’s advanced CoWoS packaging capacity. For the first time in years, Apple faces genuine competition for the title of TSMC’s largest customer.

If NVIDIA continues this upward trajectory, analysts project that it could represent 19 to 21 percent of TSMC’s revenue in 2025 – a near tie with Apple’s 2024 contribution. The AI revolution, fueled by data centers, large language models, and high-efficiency computing, is creating an unprecedented demand for silicon powerhouses. TSMC, long known for its precision in smartphone chips, is now thriving in a new arena driven by cloud computing and AI acceleration.

Nevertheless, Apple is unlikely to surrender its position without a fight. The Cupertino tech giant is already developing four 2nm chips for future products, including the next wave of M-series processors and the second-generation C2 5G modem for the iPhone 18 lineup. There are also reports of an N2 wireless networking chip in development, showing Apple’s relentless push toward full in-house silicon integration. Meanwhile, TSMC is racing to operationalize its 1.4nm facility by late 2025 – an effort that Apple is rumored to be closely supporting.

Adding to the excitement, both of TSMC’s 2nm fabrication plants in Taiwan are already fully booked through 2026. Apple, always keen to secure its supply chain, has reportedly purchased over half of that initial 2nm output. With wafer prices reaching an astonishing $30,000 each, TSMC’s revenues are set to soar, even as competition intensifies. Whether Apple manages to reclaim its crown in 2026 or NVIDIA’s AI dominance cements a new era remains to be seen – but one thing is clear: TSMC stands to gain immensely from both sides of this tech arms race.