Nvidia Overtakes Apple as TSMC's Largest Client

Nvidia becomes TSMC's largest customer in 2025, driven by AI demand. Apple drops to second as TSMC expands globally and faces new competition from Japan's Rapidus.

For the first time in more than a decade, a new company has ascended to become the primary customer for the world's leading semiconductor foundry. In 2025, Nvidia secured the top position at Taiwan Semiconductor Manufacturing Company (TSMC), accounting for 19 percent of the chipmaker's revenue. This represents a more than twofold increase from the prior year and underscores the immense production capacity being consumed by the graphics giant's aggressive push into artificial intelligence.

A Strategic Shift in Foundry Dependence

Apple, which had held the leading position for over ten years, moved to second place. The iPhone maker represented 17 percent of TSMC's 2025 revenue, equivalent to NT$645.17 billion. Its order volume saw only modest growth, increasing by approximately five percent year-over-year.

In stark contrast, Nvidia's orders surged from NT$352.27 billion in 2024 to NT$726.97 billion—roughly $23.4 billion US dollars. This dramatic escalation in chip procurement mirrors the explosive demand for AI hardware, which continues to fuel Nvidia's data center business segment.

The long-standing partnership between Apple and the Taiwanese manufacturer remains significant. From 2015 through the end of 2025, Apple contributed a cumulative total exceeding NT$4.22 trillion ($132 billion US) to TSMC. However, this historic relationship is now being overshadowed by the sheer velocity of Nvidia's expansion.

Global Expansion Fueled by Government Incentives

TSMC's strategy to geographically diversify its manufacturing footprint is receiving substantial support through international subsidies. The company has secured a combined $4.8 billion US (NT$151 billion) in government grants from four nations. These funds are directly supporting the construction of advanced fabrication facilities outside of Taiwan, a strategic realignment aimed at building more resilient and distributed supply chains for critical semiconductors.

New Competition Emerges from Japan

The competitive landscape is evolving. While TSMC commenced high-volume production of its next-generation 2-nanometer chips in the fourth quarter of 2025, a new challenger is taking shape in Japan. The startup Rapidus has raised ¥267.6 billion ($1.7 billion US) in fresh capital. The Japanese government, via the Innovation Promotion Agency (IPA), contributed ¥100 billion and received an 11.5 percent voting stake with veto rights in return. An additional ¥167.6 billion was invested by a consortium of 32 private corporations, including Sony, Fujitsu, and Canon.

Rapidus is targeting the mass production of 2-nanometer chips by 2027 and is reportedly already in discussions with more than 60 potential customers. In a parallel development, the research institute Imec has created a new method for Extreme Ultraviolet (EUV) lithography equipment. The technique increases oxygen concentration to boost photoresist performance by 20 percent, thereby accelerating production throughput.

With its 2-nanometer process technology already operational and bolstered by massive orders from Nvidia, TSMC's market position appears robust. Whether Rapidus can achieve competitive production by its 2027 target remains to be seen. For the present, the Taiwanese industry leader continues to dominate the most advanced tiers of chip manufacturing.