TAIPEI (Taiwan News) — Nvidia has eclipsed Apple as the largest customer of TSMC, the world's leading chip foundry, according to a company filing.

The shift, disclosed in TSMC's quarterly earnings report released Wednesday, underscores Nvidia's surging demand for advanced semiconductors to power AI applications, per Tom’s Hardware. 

Nvidia, which relies heavily on TSMC for its graphics processing units, accounted for 13% of the Taiwanese company's revenue in the fourth quarter of 2025, up from previous periods. Apple, long TSMC’s biggest client for iPhone and other device chips, slipped to second place at 11%.

TSMC CEO C.C. Wei (魏哲家) highlighted the change during an earnings call. Intellectia noted that AI-related revenue now represents over 50% of the company's total sales, driven by orders from Nvidia and other hyperscalers.

The milestone comes as Nvidia's stock has soared more than 150% in the past year on AI hype, while Apple faces slower growth in its core smartphone business. Analysts say the transition reflects broader industry trends, with AI accelerators outpacing consumer electronics in capital spending.

TSMC, which manufactures chips for about half the global semiconductor market, reported record quarterly revenue of NT$801 billion (US$25.4 billion), beating estimates. Shares rose 3% in Taipei trading Thursday.

Some industry watchers predict Nvidia could widen its lead this year as TSMC ramps up production of its cutting-edge 3-nanometer and 2-nanometer processes, critical for next-generation AI models.