Nvidia replaced Apple as TSMC’s largest customer

Theo WSJApple no longer holds a unique position in TSMC – the world’s largest contract chip manufacturer. The loss of a decisive voice in the supply chain forces Apple CEO Tim Cook to look for additional backup production partners as well as meet high demand for iPhone and Mac.

During a visit to Taiwan at the end of January, Nvidia CEO Jensen Huang said that TSMC “must work extremely hard” to meet the skyrocketing demand for AI chips. He predicts that Nvidia’s demand alone could force TSMC to double capacity in the next decade.

“TSMC is doing a phenomenal job, but we need a lot of wafers this year,” he said. Previously, TSMC Chairman also admitted that current capacity is “not enough, still not enough” when the capacity of advanced processes is only one-third of the actual needs of the AI ​​market.

For more than a decade, Apple has always been the most important customer, regularly covering TSMC’s most advanced chip production line. However, the rise of Nvidia has changed the order, making Apple also have to compete fiercely for each shipment.

In the final quarter 2025 financial report, Tim Cook appeared to answer questions about memory shortages but admitted the company was concerned about processor supply. Supply chain sources said Apple is offering options, such as returning to cooperate with Intel. However, instead of using Intel’s architecture as before, Apple will hire a factory to design Apple Silicon chips. Analyst Ming-Chi Kuo predicts that low-end M7 chips will likely be produced in the US by Intel in 2027.

Besides Intel, Samsung is the next bright name. Apple used to use chips produced by Samsung from generation A4 to A9. In August 2025, Apple also revealed that it is developing a new chip manufacturing technology with Samsung at its factory in Austin, Texas.

Looking to Intel or Samsung is not just a temporary solution. According to experts, Apple often does not want to rely heavily on a single supply source to avoid risks and increase price negotiation advantages.

It is unclear whether the rise of AI is a temporary craze or a long-term revolution, but analysts say that, even if Apple returns to being TSMC’s largest customer in the near future, the exclusive relationship that has lasted since 2014 between these two giants has probably come to an end.