35.6 C
Delhi

NVIDIA Climbs to Second Spot as TSMC’s Largest Client, Trailing Apple

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

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.

- Advertisement -TechnoSports-Ad
image 2 88 jpg NVIDIA Climbs to Second Spot as TSMC's Largest Client, Trailing Apple

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.

image 2 87 jpg NVIDIA Climbs to Second Spot as TSMC's Largest Client, Trailing Apple

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.

- Advertisement -TechnoSports-Ad

FAQs

  1. <strong>Why is NVIDIA significant for TSMC?</strong>

    NVIDIA’s demand for AI accelerators has led to increased collaboration, securing the second spot in TSMC’s revenue sources.

  2. <strong>How do NVIDIA and TSMC benefit from collaborating?</strong>

    NVIDIA accesses advanced semiconductor processes, while TSMC gains from NVIDIA’s substantial orders and investments.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

TechnoSports-Ad

Popular

TechnoSports-Ad

Related Stories

More from author

Pushpa 2 Release Date, Cast, Plot, and More: All the Details

Pushpa 2 Release Date, Cast, Plot, and More are disclosed in this article Pushpa is a movie starring South Indian superstars Allu Arjun and Rashmika...

Airtel Unveils ₹1,499 Plan with Netflix, Jio Launches ₹909 Plan with SonyLIV

Reliance Jio has recently introduced a brand recharge plan priced at ₹909 offering a wide range of benefits, for a duration of 84 days....

Chandu Champion Release Date, Storyline, Cast, and More: Coming in 2024

Chandu Champion, a highly anticipated film featuring Kartik Aaryan in the lead role, is in the works. Sajid Nadiadwala and Kabir Khan are the...

Jio Unveils ‘Happy New Year Offer 2024’: ₹2,999 Plan Extended to 389 Days (April 23)

Jio, a prominent telecommunications operator in India, has introduced the "Happy New Year Offer 2024," specifically targeting its prepaid user base. The focal point...