[Taiwan Chip News] Nvidia Surpasses Apple to Become TSMC's Largest Customer Amid AI Boom

Driven by Surging Demand for AI GPUs

Nvidia's Share of TSMC Revenue Rises from 12% to 19%

Combined Share of Apple and Nvidia Projected to Reach 40%

Amid the boom of artificial intelligence (AI), Nvidia has surpassed Apple to become TSMC's largest customer. It is estimated that Nvidia accounted for around 19% of TSMC's total revenue last year. The rapid surge in demand for graphics processing units (GPUs) for AI data centers has driven Nvidia's increased production volume, which in turn has significantly boosted TSMC's revenue.

According to TSMC's annual report released on March 9, the revenue contributed by TSMC's "largest customer (Nvidia)" last year amounted to 726.9 billion Taiwan dollars (approximately 31 trillion won), a 1.06-fold increase compared to 2024. The proportion of TSMC's total revenue accounted for by this customer also rose from 12% in 2024 to 19% last year. Revenue contributed by TSMC's "second-largest customer (Apple)" amounted to 645.1 billion Taiwan dollars (around 27.7 trillion won), a 3.33% increase from 2024. However, its share of overall revenue dropped from 22% in 2024 to 17% last year.

Although the annual report did not disclose customer names, it is interpreted that the largest customer is Nvidia and the second-largest customer is Apple. Previously, Nvidia CEO Jensen Huang revealed on a podcast in January that Nvidia had overtaken Apple to become TSMC's top customer.

Apple has long held the position of TSMC's largest customer. Currently, Apple sources most of the processors used in its smartphones, tablets, and PCs from TSMC. However, as pressures regarding semiconductor supply and cost burdens have recently intensified, Apple is reportedly seeking to diversify its supply chain.

Nvidia manufactures AI server GPUs such as the H100, H200, and B100 (Blackwell) using TSMC's advanced processes. The industry believes that as the AI application market grows, Nvidia's business is expanding, and TSMC, as the major contract chip manufacturer, is also directly benefiting. While the revenue contributed by Apple has increased, Nvidia's revenue growth is outpacing it. Thanks to the growth of its AI data center business, Nvidia posted a record-high annual revenue of 215.938 billion US dollars (about 308.25 trillion won) for the current fiscal year. Nvidia expects that demand for AI infrastructure will continue for the next seven to eight years.

TSMC also achieved record-high revenue last year, reaching 3.809 trillion Taiwan dollars (about 164 trillion won), representing a 31.6% year-on-year increase. According to industry sources, the increased demand for AI semiconductors is expected to continue driving TSMC's revenue this year, with orders from Nvidia and Apple leading the way. Taiwanese semiconductor industry media and research firm DIGITIMES predicts that the combined share of these two customers will exceed 40% of TSMC's total revenue this year.

With AI demand remaining strong, there are projections that Nvidia is likely to retain its position as TSMC's largest customer this year as well. In particular, as demand for AI GPUs for data centers continues to grow, the launch of new products this year is expected to further boost revenue. Mass production of the "Blackwell" series based on 4nm (1nm = one-billionth of a meter) technology is set to ramp up this year, which is expected to drive TSMC's foundry performance. Subsequently, next-generation "Rubin" AI chips will be launched sequentially, further expanding semiconductor demand.

Reported by Tang Sujun and Zhang Jianzhong (Central News Agency), Taiwan Economic Daily News / Translated by The Asia Business Daily

※ This column is published as part of a strategic partnership between The Asia Business Daily and Taiwan Economic Daily News.

This content was produced with the assistance of AI translation services.