TSMC Surpasses Apple as Leading Client, Expected to Outgrow Revenue

Taiwan Semiconductor Manufacturing (TSM) and Apple have been partners for years, but their business relationship is changing. The latest development is the launch of Apple's new A20 Pro chip, which uses TSM's advanced 2-nanometer production process.

The A20 Pro chip powers Apple's newly launched iPhone 18 Pro and Pro Max, as well as its folding smartphone, the iPhone Duo. This new technology packs more transistors onto a smaller space, delivering better computing power while reducing energy consumption.

However, Apple's growth prospects are less impressive compared to TSM's. Analysts expect TSM's revenue to grow at 43% in New Taiwan dollars this year and 34% next year. In contrast, Apple's revenue is expected to grow only 15% this year and 10% next year.

TSM has also become the leading client for Nvidia (NVDA), overtaking Apple due to the accelerating AI infrastructure build-out. This shift could cost Apple some bargaining power with TSM.