- HPC revenue hit 60% of TSMC’s Q2 2025 earnings, surpassing smartphone chipsets.
- NVIDIA may become TSMC’s largest client, capturing 19–21% of 2025 revenue.
- Apple holds over 50% of initial 2nm wafer supply, aiming to reclaim dominance by 2026.
TSMC’s revenue landscape is shifting as High Performance Computing (HPC) orders surge, threatening Apple’s decade-long dominance as the semiconductor giant’s biggest client. While Apple has driven much of TSMC’s growth, the rise of NVIDIA’s AI GPUs and HPC chips is reshaping priorities for 2025 and beyond.
HPC Orders Surge, Smartphone Demand Declines
TSMC’s second-quarter 2025 revenue reveals a dramatic shift: HPC accounted for 60% of total revenue, outpacing smartphone chipsets for the first time in years. NVIDIA, leveraging this HPC boom, occupies over half of TSMC’s CoWoS advanced packaging capacity. Analysts predict that if current trends continue, NVIDIA could generate 19–21% of TSMC’s annual revenue, potentially surpassing Apple as the top client.
Meanwhile, smartphone orders are slowing. Apple remains a significant player, holding over half of TSMC’s initial 2nm wafer supply for multiple upcoming chipsets. Yet the shift toward HPC illustrates the growing market appetite for AI and advanced computing power.
Apple’s 2nm Strategy and Future Prospects
Apple isn’t stepping back. The company has four 2nm chipsets in development for next year, along with the second-generation C2 5G modem for the iPhone 18 and possibly the N2 wireless networking chip. TSMC’s 1.4nm facility is also on track, with plans to start operations by the end of 2025. This positions Apple to potentially reclaim the top spot by 2026, provided HPC demand balances out against its high-value pre-orders of 2nm wafers, estimated at $30,000 each.
Also Read: Apple Accelerates AI Smart Glasses to Compete with Meta by 2027
A Competitive Future for TSMC’s Clients
TSMC’s revenue mix is evolving rapidly. While Apple has historically fueled TSMC’s growth, NVIDIA’s HPC orders are reshaping the semiconductor landscape. As both giants ramp up production of next-generation chips, TSMC stands to benefit from record revenues, while the battle for the top customer position intensifies. The coming year could see Apple and NVIDIA trading places in a high-stakes race for dominance in semiconductor supply and innovation.
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