Nvidia Overtakes Apple as TSMC's Biggest Customer

Apple has mislaid its long-held presumption arsenic TSMC's largest lawsuit successful 2026 amid surging request for AI chips, CNBC reports.


Nvidia is expected to overtake Apple arsenic the azygous largest root of gross for TSMC. Analyst estimates suggest Nvidia volition make astir $33 cardinal successful gross for TSMC during 2026, representing astir 22% of the foundry's full revenue, compared with an estimated $27 billion, oregon astir 18%, attributable to Apple. Nvidia main enforcement Jensen Huang reportedly confirmed connected a caller podcast that the modulation has already occurred, saying that Nvidia is present TSMC's largest customer.

Apple has been wide regarded arsenic TSMC's anchor lawsuit for much than a decade. Apple relies connected the Taiwanese institution to manufacture its custom-designed A-series processors utilized successful the iPhone and iPad, arsenic good arsenic its M-series chips for the Mac and ‌iPad‌. That narration has historically fixed Apple aboriginal entree to TSMC's astir precocious manufacturing technologies and allowed TSMC to warrant the tremendous superior investments required to make each caller procreation of semiconductor process nodes.

The alteration reflects a accelerated enlargement successful Nvidia's demand, driven by the planetary build-out of artificial quality infrastructure, wherever its graphics processing units are wide utilized arsenic accelerators successful information centers operated by large unreality work providers.

One cardinal origin down Nvidia's rising stock of TSMC gross is the quality of the chips it needs. AI accelerators are importantly larger, much complex, and much costly to manufacture than Apple's A- oregon M-series chips. They often necessitate leading-edge process nodes, precocious packaging techniques, and higher wafer costs, each of which construe into higher gross per spot for TSMC. While Apple ships acold higher volumes of processors overall, it requires smaller system-on-a-chip designs optimized for powerfulness ratio and user devices, resulting successful little manufacturing costs per unit.

TSMC's increasing reliance connected AI customers could person nonstop implications for Apple. While it remains 1 of the foundry's astir important customers, it is nary longer the superior operator of TSMC's capableness enlargement oregon superior expenditure decisions. Analysts accidental that Nvidia has efficaciously taken Apple's spot arsenic the standard lawsuit that helps usher improvement and warrant accrued concern successful each caller leading-edge process node.
This article, "Nvidia Overtakes Apple arsenic TSMC's Biggest Customer" archetypal appeared connected MacRumors.com

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