TSMC Surpasses Apple as Top Client, Outgrows Revenue

Apple and Taiwan Semiconductor Manufacturing have just announced a new cutting-edge chip. This new A20 Pro chip, used in Apple's newly launched iPhone 18 Pro and Pro Max as well as its new folding smartphone, the iPhone Duo, uses Taiwan Semiconductor's most advanced technology.

The biggest advancement of this chip is that it uses Taiwan Semiconductor's cutting-edge 2-nanometer (nm) chip production process versus the last generation's 3nm process. This packs more transistors onto a chip in a tighter area and delivers better computing power while reducing energy consumption.

TSMC's revenue growth rate is expected to be much higher than Apple's, with Wall Street analysts predicting a 43% pace in New Taiwan dollars for TSMC in 2026 and 34% in 2027. Apple's revenue growth is expected to be about 15% this year and 10% next year.

TSMC's low valuation compared to Apple's makes it an attractive buy, especially considering its strong growth prospects. With TSMC being a major player in the chip manufacturing industry, it is well-positioned to benefit from the accelerating AI infrastructure build-out.