NVIDIA Becomes TSMC’s Top Client
NVIDIA has officially overtaken Apple as the largest customer of Taiwan Semiconductor Manufacturing Company (TSMC), marking a significant shift in the semiconductor industry. This milestone highlights the explosive demand for AI-related chips, as NVIDIA’s expanding AI infrastructure drives unprecedented orders. In 2025, NVIDIA accounted for over 19% of TSMC’s total revenue, amounting to approximately $23.4 billion, nearly doubling its share from the previous year.
Details on the Growing Partnership
TSMC has long been the world’s leading semiconductor foundry, powering many of the most advanced chips globally. Apple had dominated TSMC’s customer list for years, largely due to its reliance on cutting-edge A-series and M-series processors for iPhones, iPads, and Macs. However, the rise of AI and data centre demands has propelled NVIDIA’s chip orders to new heights. NVIDIA’s products span both frontend and backend semiconductor segments, relying heavily on TSMC’s advanced manufacturing nodes.
Currently, NVIDIA’s Vera Rubin GPU line utilises TSMC’s 3nm process technology, with the upcoming Rubin Ultra expected to transition to the 2nm (N2) node. Future chips like Feynman are anticipated to adopt the even more advanced 1.6nm (A16) process. Alongside these developments, NVIDIA is also integrating sophisticated packaging solutions to enhance performance and efficiency.
A Decade-Long Relationship Comes to Fruition
The strong collaboration between NVIDIA and TSMC has been years in the making. Back in 2015, NVIDIA CEO Jensen Huang promised TSMC founder Morris Chang that his company would become the foundry’s largest client. Huang frequently emphasises the critical role TSMC’s supply chain plays in NVIDIA’s success, even stating that there would be no NVIDIA without TSMC. This close partnership has given NVIDIA a distinct advantage in the competitive AI chip market.
Despite TSMC’s ability to meet soaring demand, its position as the primary supplier for AI chips also makes it a potential bottleneck, especially given geopolitical tensions surrounding Taiwan. The industry will be watching closely to see how NVIDIA and TSMC navigate these challenges as AI infrastructure continues to expand rapidly.
Looking Ahead
With NVIDIA now firmly established as TSMC’s largest customer, the semiconductor giant’s revenue from NVIDIA is expected to grow further. The adoption of newer, smaller process nodes and advanced packaging techniques will likely deepen this relationship. As AI technology evolves and infrastructure demands increase, the NVIDIA-TSMC partnership will remain a key factor shaping the future of chip manufacturing.
For those following the semiconductor and AI sectors, this development underscores how AI is reshaping the industry landscape, shifting power dynamics, and accelerating innovation at an unprecedented pace.
Source: @dnystedt