Apple ruled Taiwan Semiconductor Manufacturing Co.’s order book for years. That crown has now changed hands.
Nvidia has overtaken Apple as the largest customer of TSMC, marking a major shift in the global semiconductor industry. The confirmation came directly from Nvidia CEO Jensen Huang during a recent podcast appearance, putting an end to speculation about how far AI chip demand has reshaped foundry priorities.
Huang made the remark on “A Bit Personal with Jodi Shelton,” a podcast hosted by Global Semiconductor Alliance CEO Jodi Shelton, while reflecting on Nvidia’s early ambitions in the chip business.
“By the way, Morris will be happy to know Nvidia is TSMC’s largest customer now,” Huang said on the podcast, referring to TSMC founder Morris Chang.
The comment was delivered with a laugh, but it underscored a serious change in the balance of power between two of the world’s most influential tech companies.
A role reversal years in the making
Nvidia’s rise to the top is not entirely new.
The company was among TSMC’s largest customers in the early 2000s, before Apple surged ahead in the 2010s as the foundry took on production of iPhone and iPad processors. Apple’s dominance only grew as it expanded its custom silicon to Macs and MacBooks.
The long-standing arrangement is now being challenged by the rapid growth of AI computing.
Demand for Nvidia’s GPUs has soared as cloud providers, enterprises, and governments race to build AI data centers. Unlike consumer electronics, where pricing has clear limits, AI infrastructure buyers have shown a willingness to spend aggressively to secure computing capacity.
AI spending reshapes foundry priorities
Industry estimates cited across multiple reports suggest Nvidia now accounts for roughly 13% of TSMC’s total revenue, enough to push it ahead of Apple for the first time in over a decade.
The shift comes even as Apple reportedly continues to secure a large share of TSMC’s most advanced manufacturing capacity, including early access to 2-nanometer production for future iPhone chips. Still, AI accelerators are now generating more revenue for the foundry than smartphone processors.
Rumors of pricing pressure on Apple
Alongside the customer shake-up, unconfirmed reports have surfaced suggesting TSMC may raise prices for Apple’s chip production as capacity tightens amid AI demand. Claims circulating from industry tipsters also suggest Apple may no longer receive priority treatment in shipments.
Neither TSMC nor Apple has publicly commented on these reports.
Huang has repeatedly defended the scale of investment pouring into AI infrastructure, describing it as a foundational transformation rather than a short-term trend.
Speaking separately at the World Economic Forum in Davos, Huang said:
“The AI bubble comes about because the investments are large, and the investments are large because we have to build the infrastructure necessary for all of the AI layers.”
He has also described the current moment as “the largest infrastructure buildout in human history,” pointing to growing demand not just for chips, but for energy, data centers, and skilled labor.
For more insight into how Nvidia sees the AI boom reshaping the economy, read how CEO Jensen Huang says AI will create new jobs rather than eliminate them.