TLDR
- Nvidia will overtake Apple as TSMC’s largest customer in 2026, with analysts estimating $33 billion in revenue versus Apple’s $27 billion
- AI chips are larger and more expensive to produce than phone chips, generating more revenue per unit and consuming more factory space at TSMC
- TSMC’s high-performance computing segment, which includes Nvidia chips, now represents 55% of revenue, up from 40% in 2022
- Jensen Huang confirmed the shift on a recent podcast, stating “Nvidia is TSMC’s largest customer now”
- TSMC plans to spend up to $56 billion on capital expenditures this year, though CEO C.C. Wei expressed caution about the heavy investment required
Nvidia is now the largest customer of Taiwan Semiconductor Manufacturing Company. The shift marks a turning point in the chip industry that’s been dominated by Apple for years.
Jensen Huang confirmed the change on a recent podcast. “Morris will be happy to know Nvidia is TSMC’s largest customer now,” he said, referring to TSMC founder Morris Chang.
Analyst Ben Bajarin estimates Nvidia will generate about $33 billion in TSMC revenue this year. That’s roughly 22% of the foundry’s total sales. Apple is projected at $27 billion, or around 18%.
The numbers tell a story about where the chip market is heading. AI demand is reshaping factory priorities and customer relationships. What took Apple years to build through iPhone and Mac chip orders, Nvidia has matched through data center GPUs.
This isn’t just about who spends more money. AI chips are physically larger and more complex than phone processors. Each unit costs more to make and takes up more space on factory floors.
TSMC’s latest earnings show the impact. High-performance computing, which includes Nvidia’s chips, made up 55% of revenue in the fourth quarter. That’s up from 40% in 2022, the year ChatGPT launched and kicked off the AI boom.
Cloud Providers Drive Demand
TSMC CEO C.C. Wei said cloud service providers are reaching out directly to request capacity. “Our conviction in the multi-year AI mega-trend remains strong,” Wei stated on the earnings call.
But the company isn’t charging ahead without concerns. Wei acknowledged the pressure of massive capital spending. “I’m also very nervous about it,” he said when asked about potential bubble risks.
TSMC plans to spend up to $56 billion on capital expenditures this year. Those investments won’t come online until 2028. The company is balancing growth opportunities against the reality of multi-billion dollar factory commitments.
Nvidia’s sales growth is outpacing Apple’s by a wide margin. The GPU maker is expected to report 66% growth to $213 billion in fiscal 2026. Apple’s growth in fiscal 2025 was 6.4%.
A Promise Decades in the Making
Huang first met Morris Chang years ago and told him Nvidia would one day be TSMC’s biggest customer. That prediction seemed unlikely at the time.
The relationship has deepened as AI demand exploded. Huang visited Taiwan five times last year. In November, he attended TSMC’s annual sports day wearing the same red shirt as employees.
Power efficiency drives both companies’ partnership. More advanced manufacturing processes mean chips use less energy per operation. For Nvidia’s customers running massive data centers, energy costs directly impact returns on AI investments.
TSMC’s top 10 customers made up 76% of net revenue in March 2025. The largest customer accounted for 22% of revenue at that time. The second-largest was at 12%.
Apple remains a major TSMC customer with stable, predictable orders. But Nvidia now represents the growth engine. TSMC expects AI accelerator chips to grow at a “mid-to-high-fifties” compound rate through 2029.
Wei pointed to Nvidia’s product roadmap as evidence of sustained demand. “From Hopper to Blackwell to Rubin — that almost doubles, triples their performance,” he said.
Wei added that the bottleneck in the AI industry remains “TSMC’s wafer supply.”
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