Nvidia Surpasses Apple as TSMC’s Top Customer Amid AI Chip Boom

Nvidia has overtaken Apple as Taiwan Semiconductor Manufacturing Company's (TSMC) largest customer, marking a seismic shift in the semiconductor industry. CEO Jensen Huang foreshadowed this transition decades ago in conversations with TSMC founder Morris Chang. "Morris will be happy to know Nvidia is TSMC's largest customer now," Huang recently remarked on a podcast.

The reversal of fortunes stems from the explosive demand for AI chips following OpenAI's 2022 launch of ChatGPT. Nvidia now drives an estimated $33 billion in annual revenue for TSMC—22% of the foundry's total—while Apple contributes $27 billion (18%). This represents a dramatic change from previous years when Apple's A-series and M-series processors dominated TSMC's production lines.

Analyst Ben Bajarin of Creative Strategies notes the scale of Nvidia's capacity demands from TSMC has grown exponentially. The company's chips power countless data centers worldwide, fueling the AI revolution. Though TSMC doesn't publicly rank its 522 customers, March disclosures revealed one client accounted for 22% of revenue—a clear indicator of Nvidia's ascendance.