Apple is Fighting for TSMC Capacity as Nvidia Takes Center Stage

Apple's long-standing relationship with TSMC is facing challenges as the AI boom drives up demand for TSMC's high-powered chips, particularly from clients like Nvidia. Apple, which once dominated TSMC's customer base, now struggles to secure enough production capacity as it competes with AI companies for supply. TSMC's revenue surged 36% last year, fueled by a 48% growth in high-performance computing sales, driven by AI, while smartphone revenue growth slowed to 11%. The shift in demand from smartphones to AI chips means Apple may need to fight for TSMC capacity in the near term, though it remains a key client due to its diverse chip portfolio.