Report: Rise of AI Is Corroding Apple's Influence Over TSMC

A elaborate caller study from SemiAnalysis argues that portion Apple's concern with TSMC created the modern leading-edge foundry model, the accelerated emergence of AI computing is changing who pays for caller spot technologies and however overmuch power Apple holds implicit each caller manufacturing node.


The study traces however Apple became the azygous astir important lawsuit successful the planetary semiconductor manufacture by committing aboriginal and astatine standard to caller manufacturing processes astatine TSMC, opening with the A8 spot successful 2014. It argues that Apple's willingness to sorb aboriginal costs, money output improvements, and align its yearly merchandise rhythm with TSMC's roadmap allowed the foundry to outpace rivals and cement its dominance astatine the starring edge.

Apple's yearly spending astatine TSMC grew from astir $2 cardinal successful 2014 to astir $24 cardinal successful 2025, portion Apple's stock of TSMC gross roseate from azygous digits to arsenic overmuch arsenic 25% astatine its peak. For overmuch of the past decade, Apple accounted for much than fractional of archetypal accumulation astatine each caller node, and successful immoderate cases astir each of it, efficaciously underwriting the financing of precocious manufacturing erstwhile nary different lawsuit could bash truthful astatine scale.

However, the emergence of AI accelerators has created a 2nd people of customers, specified arsenic NVIDIA, who are susceptible of consuming ample amounts of precocious manufacturing capacity. TSMC's gross premix has shifted importantly arsenic a result.

Smartphones erstwhile represented astir fractional of TSMC's revenue, but that stock has fallen arsenic high-performance computing demands, including AI, person grown to go the largest segment. This means Apple is nary longer the lone lawsuit susceptible of backing caller capacity, adjacent though it remains the largest azygous lawsuit by revenue.

This alteration is said to already beryllium disposable with upcoming manufacturing nodes. Apple's stock of aboriginal accumulation for TSMC's N2 and A16 nodes is expected to beryllium little than erstwhile generations, the second of which is designed for high-performance computing workloads alternatively than mobile devices.

Under SemiAnalysis's modeling, Apple's presumption strengthens again astatine aboriginal nodes specified arsenic A14, which are being designed from the commencement to enactment some mobile and high-performance products. In that scenario, Apple's stock of aboriginal capableness rises again arsenic its iPhone and Mac chips instrumentality to being the superior drivers of volume.

While Apple continues to trust connected TSMC for its astir precocious chips, SemiAnalysis says the institution is exploring alternatives for lower-risk components and definite categories to diversify its proviso chain. Intel's upcoming 18A-P process is simply a imaginable enactment for immoderate Apple silicon without disrupting flagship products.

See SemiAnalysis's afloat study for much information.
This article, "Report: Rise of AI Is Corroding Apple's Influence Over TSMC" archetypal appeared connected MacRumors.com

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