TSMC traditionally does not disclose details of its relationships with customers, but under US law it is required to disclose data about customers who account for more than 10% of its revenue. Financial analyst Dan Nystedt predicts that NVIDIA is expected to contribute 11% of TSMC’s revenue in the year 2023.
NVIDIA Claimed Second Spot as Apple Client
In the year Apple, identified as “Client A”, in TSMC’s filing with the US Securities and Exchange Commission (SEC) accounted for 25% of the company’s revenue amounting to $17.52 billion. On the other hand, NVIDIA labeled as “Client B” paid TSMC $7.73 billion representing an 11% share of the company’s revenue.
According to Dan Nystedt, TSMC’s top ten customers collectively made up 91% of its revenue year an increase from 82% in 2022. These customers include MediaTek, AMD, Qualcomm, Broadcom, Sony, and Marvell.
Apple has been a client of TSMC for a period and is expected to retain that position in the future. While no other client has contributed more than 10% of TSMC’s revenue in a significant amount of time companies like AMD, MediaTek, and Qualcomm have been scaling up their orders recently. The surge in demand for NVIDIA H100 and A100 accelerators due to advancements in intelligence technologies has driven increased order volumes from them. In fact, NVIDIA secured part of TSMCs production capacity between 2021 and 2022.
NVIDIA produces products, like the H100 and A100 AI accelerators, which are made and packaged at TSMC factories using their CoWoS technology. With the rising demand, for AI equipment NVIDIAs portion of TSMC’s earnings is projected to rise in 2024. The company has secured production and packaging capabilities to maintain a supply of its products.
It is not yet known whether AMD’s share of TSMC’s revenue will exceed 10%. The company is actively selling EPYC server processors, and its Instinct MI300 AI accelerators are also in high demand, so the share of “red” ones in the Taiwanese contractor’s income may also increase.
