Apple's Exclusive Chip Deal with TSMC May Be Ending

Apple may no longer hold preferential treatment at Taiwan Semiconductor Manufacturing Co. (TSM-US)(2330-TW), as Nvidia (NVDA-US) overtakes the iPhone maker as the company’s largest client, according to sources cited by MacDailyNews. TSMC CEO魏哲家 reportedly told Apple executives in August 2025 that price increases were imminent and that Apple would lose priority access to production capacity. This shift reflects a dramatic change driven by Nvidia’s explosive demand for advanced chips used in AI applications. While Apple remains a long-term key customer due to its broad product portfolio, short-term dynamics favor Nvidia and AMD (AMD-US), forcing Apple to compete more aggressively for advanced-node capacity. TSMC’s financial chief declined to comment on client rankings. Despite this, Apple’s manufacturing footprint across multiple TSMC facilities gives it enduring significance. Analysts expect the balance to eventually favor Apple again, especially with TSMC’s upcoming 2028 A14 process node designed for both mobile and high-performance computing.