In an interview with Jodi Shelton, co-founder and CEO of the Global Semiconductor Alliance (GSA) and also known as the "Queen of Semiconductors," NVIDIA CEO Jensen Huang stated that NVIDIA has become TSMC's largest customer, surpassing Apple's production capacity needs. This is not merely a change in ranking between the two companies; it signifies that the driving force of the semiconductor industry has officially entered a new era centered on "AI computing power," a shift from being dominated by "smartphones" in the past decade.
Morris Chang was also delighted by the "golden cross".
In an interview on Jodi Shelton's podcast "A Bit Personal," Jensen Huang jokingly remarked, "Morris Chang must be very happy to know that NVIDIA is now TSMC's largest customer." Industry insiders estimate that NVIDIA currently accounts for approximately 13% of TSMC's total revenue, successfully dethroning Apple, which had long held the top spot.
This shift reflects the frenzied global demand for AI chips (such as H100 and B200), which is even crowding out chip production capacity that originally belonged to consumer electronics (including Apple and Qualcomm chip products).
Besides emphasizing that they are currently TSMC's largest customer, Huang Renxun also made these remarks during CES 2026.InterviewAt the same time, it was stated that they are actively procuring memory from companies such as Samsung and Micron to meet the growing AI computing demands.
Apple out of favor? TSMC reportedly adjusts its priority supply rights.
With its largest customer changing, Apple's previously enjoyed "absolute priority" seems to be starting to waver. Market rumors suggest that TSMC is adjusting its priority supply relationship with Apple, and that due to the pressure on production capacity caused by AI demand, TSMC is raising the pricing for Apple chip production capacity.
To reconcile pricing and production capacity issues, TSMC President C.C. Wei recently even personally visited Apple's headquarters for talks. This demonstrates that in a seller's market where supply cannot meet demand, even a major customer like Apple faces the challenge of diminished bargaining power.
Half of the 2nm production capacity has been secured, but the A20 chip has become more expensive.
Despite relinquishing its position as the largest supplier of TSMC's advanced process technology, Apple remains a key driver for TSMC's success. Reports indicate that Apple has secured approximately half of TSMC's 2nm process capacity, primarily for the upcoming A20 and A20 Pro chips, expected to be used in the new iPhone 18 series.
However, the cost is high. With TSMC raising the price of advanced process technology for four consecutive years, the market predicts that the unit price of Apple's A20 chip will rise sharply to US$280 (about NT$9000), which means that the manufacturing cost of the upcoming new iPhone will increase significantly, and consumers should probably be prepared for a price increase.
Analysis of viewpoints
For the past decade, Apple has essentially dictated TSMC's advanced manufacturing processes, sharing TSMC's massive R&D costs by securing the initial production capacity, creating a mutually beneficial relationship. However, NVIDIA has now carved out a niche for itself with its high-priced, high-profit AI GPUs, proving that the computing power demands of the "enterprise" (B2B) sector have surpassed those of the "consumer" (B2C) mobile phone sector.
However, some analysts have warned of a potential bubble in the AI market. If the AI boom cools or the bubble bursts, demand for data center construction will freeze instantly. At that point, Apple, with its stable replacement cycle and massive user base, is likely to regain its position as TSMC's largest customer.
For TSMC, this is a sweet period of being able to benefit from both sides, but how to balance the needs of these two giants will be the biggest test for Wei Zhejia in the future.
