Nvidia set to supplant Apple as TSMC's top customer (www.cnbc.com)

Nvidia is set to become TSMC's largest customer this year, surpassing Apple, which has traditionally held that position. This significant shift highlights Nvidia's increasing prominence in the semiconductor industry, particularly amid the rapid expansion of AI infrastructure. Nvidia is projected to generate approximately $33 billion in revenue for TSMC, making up 22% of its total revenue, compared to Apple’s forecasted $27 billion, or 18%. This transition underscores the growing demand for advanced AI chips, with TSMC reporting that its high-performance computing sales, fueled largely by Nvidia, accounted for 55% of its net revenue in the last quarter. The implications of this change are substantial for both the AI and semiconductor landscapes. Nvidia's chips, which are more complex and costly to produce than those from Apple, reflect the industry's shift toward high-performance computing necessary for AI applications. TSMC, as the world's leading contract semiconductor manufacturer, plans to invest up to $56 billion this year to expand capacity in response to escalating AI demand, reaffirming its pivotal role in the sector. Despite a close relationship with Apple, TSMC's future growth is now heavily influenced by Nvidia, making it a key player in the ongoing AI revolution.