If Apple was once the "crown jewel" of Taiwan Semiconductor Manufacturing Company (TSMC), the shine of that jewel now appears to be dimming under the overwhelming wave of artificial intelligence. For years, Apple’s massive order volumes and stable demand secured its position as TSMC’s largest client, granting it priority access to production capacity. However, with the explosive growth in demand for AI chips, Nvidia has emerged as a formidable competitor, surpassing Apple in GPU orders and becoming TSMC’s new top customer.
According to supply chain sources, TSMC CEO C.C. Wei explicitly informed Apple executives during a recent meeting that wafer fabrication prices would rise significantly in the future, and Apple would no longer enjoy priority access to production capacity. This shift has undoubtedly placed considerable pressure on the tech giant. While Apple’s diverse product lineup and steady demand ensure its long-term importance to TSMC, the immediate scarcity of advanced manufacturing capacity—combined with soaring demand for AI chips—has strengthened the bargaining power of high-performance computing chipmakers like Nvidia and AMD.
The development signals that Apple may face intense competition for advanced manufacturing capacity over the next one to two years, requiring more aggressive efforts to secure resources for its chip supply. This shift in TSMC’s priorities reflects the rapid evolution of the tech industry and the profound impact AI is having on the semiconductor sector.