TSMC May Drop Apple’s Priority Shipment Status Amid Revenue Shift
Recent developments suggest that Apple may be losing its status as TSMC’s top customer, as shifts in revenue and market demand alter the landscape of semiconductor manufacturing. Despite securing over half of TSMC’s initial 2nm capacity, Apple is facing new challenges amid the surge in AI technology, which is driving significant revenue for TSMC from other clients.
Market Dynamics Impacting Apple and TSMC
TSMC, a leader in semiconductor manufacturing, has reportedly begun to prioritize other clients over Apple. A tipster revealed that TSMC CEO C.C. Wei visited Apple’s headquarters to discuss potential price increases, reflecting changes in TSMC’s revenue dynamics.
Apple’s Revenue Position
- Apple accounted for 24% of TSMC’s revenue in 2024.
- NVIDIA is set to take the lead, representing 13% of TSMC’s total revenue by 2025.
- The increasing demand for AI technology has altered TSMC’s client priorities.
This year, Apple will reportedly be supplied with 2nm wafers primarily for its A20 and A20 Pro chips, intended for the upcoming iPhone 18 series. However, TSMC’s strong demand from other sectors may result in Apple losing its previously privileged position.
Price Increases and Production Capacity
TSMC has faced tight supply constraints for 2nm wafers. With rising demand across its customer base, TSMC has executed price hikes on its advanced manufacturing nodes for four consecutive years.
The cost per unit for Apple’s A20 system-on-chip (SoC) is projected at $280, signaling potential price adjustments in light of the increasing production costs. This situation could lead Apple to reassess its position as one of TSMC’s priority clients.
The Future of Apple and TSMC
While Apple may see a significant shift in its relationship with TSMC, the situation remains fluid. Analysts have noted that following the current AI boom, there could be an opportunity for Apple to reclaim its prior status, albeit under uncertain circumstances.
As TSMC’s capital expenditures soar, reaching estimates between $52 billion and $56 billion this year, the semiconductor industry anticipates further adjustments. Whether Apple can regain its top priority status with TSMC remains to be seen as the tech industry evolves.
