TSMC is experiencing remarkable growth, largely fueled by its key client, Apple, which represented 24% of the semiconductor company’s business in 2024. However, as per recent reports, Apple’s dominance may be challenged due to a noticeable decline in smartphone chipset orders, while demand for High Performance Computing (HPC) components continues to surge.
NVIDIA Set to Surpass Apple as TSMC’s Leading Customer Amidst Rising HPC Revenue
The longstanding partnership between TSMC and Apple has been pivotal, with the iPhone manufacturer securing over half of TSMC’s initial 2nm production capacity for upcoming chipset launches next year. A report by DigiTimes highlights that while Apple has held the title of TSMC’s top client for the last decade, NVIDIA is poised to take over due to its increasing orders for AI GPUs and HPC components.
Recent insights indicate that HPC orders constituted a substantial 60% of TSMC’s revenue in Q2 2025, significantly surpassing the smartphone segment. Notably, NVIDIA occupies more than half of TSMC’s advanced CoWoS packaging capacity, positioning it to potentially challenge Apple’s long-standing market share. Projections suggest that NVIDIA could contribute between 19-21% of TSMC’s total revenue by the end of 2025 if current trends continue.
While Apple’s specific revenue share hasn’t been disclosed, there are expectations for a possible resurgence in 2026. The tech giant is reportedly developing four new 2nm chipsets, along with an advanced second-generation C2 5G modem for the upcoming iPhone 18 series and possibly a new N2 wireless networking chip. Moreover, Apple is likely collaborating with TSMC to expedite the operational readiness of its 1.4nm manufacturing facility, aiming for completion by late 2025.
Regarding the 2nm technology, TSMC has reported that its facilities in Taiwan are completely booked for the entirety of 2026. Full production is slated to commence by late 2025, with Apple having secured over 50% of the initial wafer supply. Given that the cost of each 2nm wafer is approximately $30, 000, this partnership could substantially enhance TSMC’s financial performance.
For more information, visit DigiTimes.
Additional insights can be found at WccfTech.
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