For over a decade, Apple has been the undisputed king of the semiconductor world. As the primary customer for Taiwan Semiconductor Manufacturing Co. (TSMC), Apple’s massive orders for iPhone and Mac chips essentially funded the development of the world’s most advanced chip-making technology. But in 2026, the crown has officially shifted, as reported by CNBC. Nvidia has surpassed Apple to become TSMC’s largest customer, a milestone confirmed by Nvidia CEO Jensen Huang.
Nvidia is projected to generate roughly $33 billion for TSMC this year, accounting for 22% of the foundry’s total revenue. Apple, by comparison, is expected to bring in $27 billion, or about 18%. While Apple’s A-series and M-series chips are produced in massive volumes, Nvidia’s AI chips (like the upcoming Rubin architecture) are physically larger, more complex, and significantly more expensive to manufacture.
For years, being the “biggest” meant Apple enjoyed exclusive perks, such as being the first to access new production “nodes” (the technology used to make chips smaller and more efficient). This is why the iPhone often has a one-year head start on the rest of the industry regarding battery life and processing power. With Nvidia now taking the lead, the dynamic is changing. Industry insiders suggest that Apple may no longer enjoy the same level of guaranteed priority or the deep discounts it once had. There are even reports that TSMC CEO C.C. Wei personally visited Apple to discuss “significant price increases” for future components.
Despite losing the top spot, Apple remains a vital partner for TSMC. While Nvidia provides high-growth revenue, Apple provides unmatched stability and a massive manufacturing footprint that spans dozens of different factories. Apple is still pushing the envelope, reportedly securing half of TSMC’s upcoming 2nm capacity for the iPhone 18 series. However, to maintain its edge and manage costs, Cupertino is also exploring other avenues, including potential future partnerships with Intel for lower-end chips to diversify its supply chain.
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