Nvidia is poised to challenge Apple as TSMC’s biggest customer as AI and high-performance computing orders surge
For years, Apple has been the engine behind TSMC’s rapid expansion, driving cutting-edge process development and consistently ranking as its top customer. In 2024, Apple accounted for about 24% of the foundry’s revenue, a testament to the iPhone maker’s deep integration with TSMC’s most advanced nodes. But the balance of power may be shifting as demand for AI and high-performance computing (HPC) accelerates and smartphone silicon orders cool.
According to industry reports, HPC accounted for 60% of TSMC’s revenue in Q2 2025, overtaking smartphones by a wide margin. Nvidia, riding explosive demand for AI GPUs and data center accelerators, is said to be consuming more than half of TSMC’s CoWoS advanced packaging capacity. If that momentum holds, Nvidia could represent roughly 19%–21% of TSMC’s total revenue in 2025—enough to push Apple to the number two spot for the first time in years.
This would mark a notable shift, given Apple’s long-standing priority access to TSMC’s leading nodes. The company has reportedly secured more than half of the initial 2nm supply, aligning with multiple next-generation chip launches slated for next year. Two TSMC 2nm fabs in Taiwan are already sold out for all of 2026, with full-scale 2nm production ramping by the end of 2025. With estimated wafer prices around $30,000, that early capacity lock is a significant revenue driver for TSMC.
Apple’s roadmap suggests the rivalry for the top-customer crown is far from settled. The company is said to have four 2nm chipsets in development, along with a second-generation in-house C2 5G modem aimed at the iPhone 18 lineup and a possible N2 wireless networking chip. Apple is also expected to work closely with TSMC as the foundry moves to bring a 1.4nm-class facility online, with plans kicking off by the end of 2025.
In the near term, the story is clear: AI and HPC are powering TSMC’s growth, and Nvidia is the biggest beneficiary of that shift. Longer term, Apple’s 2nm push and broader silicon portfolio could help it reclaim the top spot as volumes ramp through 2026. Either way, TSMC stands to win as the world’s most advanced nodes and packaging technologies become the backbone of both AI data centers and next-generation mobile devices.
Key takeaways for readers:
– HPC surged to 60% of TSMC revenue in Q2 2025 as smartphone chip demand softened.
– Nvidia is using over half of TSMC’s CoWoS advanced packaging capacity and could reach 19%–21% of TSMC’s 2025 revenue.
– Apple remains deeply tied to TSMC, securing over 50% of initial 2nm supply and preparing multiple 2nm chips.
– Two TSMC 2nm fabs are sold out for 2026; full-scale production starts by late 2025.
– Apple’s pipeline, including a second-gen C2 5G modem and potential N2 wireless chip, could help it regain the top spot in 2026.
