TSMC Allegedly Deprives Apple of Priority Shipment Status Amidst Declining Revenue Contribution from iPhone Maker

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Assessment Status: Plausible

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Current Developments on Apple’s Relationship with TSMC Recent reports indicate that Apple may soon lose its position as TSMC’s premier client. Despite having secured over half of TSMC’s initial 2nm capacity—mostly allocated for the upcoming A20 and A20 Pro chips intended for the iPhone 18 series—the reality of Apple’s diminished position has emerged. With the tech giant’s revenue streams being overshadowed by the burgeoning AI sector, industry insiders suggest that TSMC may alter its approach regarding shipment priorities. TSMC’s Price Increase and Shift in Prioritization The longstanding partnership between Apple and TSMC, historically viewed as preferential, is facing a pivotal transformation. Previously, Apple was credited with contributing significantly to TSMC’s revenue. However, recent analyses indicate that the tide is shifting. Reports suggest that TSMC CEO C. C.Wei has met with Apple to address unprecedented price hikes—reflecting a growing trend where smartphone system-on-chip (SoC) sales are not the driving force behind TSMC’s earnings anymore.

Apple’s revenue contribution is overshadowed by the AI boom affecting TSMC.

TSMC is reportedly grappling with a tight supply of 2nm wafers. Following a surge in demand, the company has been compelled to increase the prices for its advanced nodes for four consecutive years, beginning in 2026. Although these price adjustments are not solely directed at Apple, it is noteworthy that the A20 SoC is projected to carry a cost of $280 per unit, indicating that these price changes may have already begun to take effect.

Further insights from the Weibo user Fixed-focus digital cameras suggest that NVIDIA has recently surpassed Apple as TSMC’s largest client, making up 13% of TSMC’s total revenue. As the AI sector continues its growth trajectory, TSMC’s capital spending is projected to skyrocket, reaching an estimated $52 billion to $56 billion this year. This scenario casts doubt on when—or if—Apple will regain its previous status as TSMC’s primary revenue generator. For more information, visit the original news source: Fixed-focus digital cameras. Additional insights can be accessed through the original article: Source & Images.