Apple’s Potential Fall as TSMC’s Top Customer This Year Despite Contributing 25.2% to Annual Revenue

TSMC has established a lucrative partnership with Apple over recent years, predominantly supplying various chipsets for an array of devices, with iPhone sales forming the backbone of its revenue stream. However, evolving market dynamics indicate that Apple may not retain its status as TSMC’s primary client this year. The escalating demand for artificial intelligence (AI) technologies and related chip applications is gaining momentum, creating a potential shift in customer rankings.

NVIDIA’s Potential Ascendancy as TSMC’s Top Customer by 2025

At present, Apple holds the title of TSMC’s largest customer, responsible for approximately 25.2% of the semiconductor manufacturer’s annual income, according to supply chain analysis by Bloomberg. In contrast, NVIDIA’s contribution sits at around 10.1%. However, reports suggest this may soon change. Analysts from Citi Securities highlight that the increasing demand for AI chipsets could propel NVIDIA to surpass Apple as TSMC’s leading customer.

Forecasts indicate that by 2025, NVIDIA might represent 20% of TSMC’s total revenue. Despite prior estimates from Bloomberg indicating Apple would maintain its leadership, the shifting dynamics mean Apple’s revenue share could decline as NVIDIA’s foothold expands. As noted by Citi Securities, significant growth is anticipated for application-specific integrated circuits (ASICs) tailored for AI workloads, which would further bolster TSMC’s financial outlook over the next few years.

Moreover, by the end of 2025, a majority of AI chips are expected to leverage TSMC’s advanced 3nm technologies. This transition is projected to enhance the average selling price of TSMC’s wafers, subsequently boosting its profitability heading into 2026. While Apple will undoubtedly continue to be a vital TSMC client, the usage of 2nm and 3nm processes will likely be reserved for its proprietary silicon utilized in various products and generative AI infrastructure. Given NVIDIA’s extensive client portfolio, its order volumes are anticipated to rise significantly, paving the way for it to potentially overshadow Apple as TSMC’s most substantial customer.

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