Taiwanese Semiconductor Manufacturing Company (TSMC) has been Apple’s iPhone chip supplier for a long time and since the launch of the M1 chip, the partnership has gotten stronger. Currently, TSMC is the only chip foundry in the world to offer chips built on a 5nm process and reportedly, the manufacturer is developing chips built on a 4nm process and a 3nm process for future Apple products.
Thus, Apple is TSMC’s biggest client with more than 25% revenue contribution and the second-largest client is MediaTek with 5.8% revenue contribution. In July, the chip manufacturer reported an impressive 20% growth with NT$372.1 billion ($13.3 billion) in revenue for the second quarter of 2021 accredited to high chip demand, during a global chip shortage.
As Intel transitions from chip manufacturer to chip designer, it could become one of TSMC’s top 3 clients
DigiTimes’ new report on partnership between Intel and TSMC included data on “TSMC’s top ten customers accounted for revenue contribution”, Apple tops the chart with double digits. No other client of the Taiwanese manufacturer comes even close to Apple. However, by 2023 Intel could also become Apple’s competitor in procuring advanced chip technology as it shifts focus from chip development to chip designing.
Apple launched the custom-built M1 chip for Macs in 2020 as the first step to transition its computers lineup from Intel to Apple Silicon. That transition not only commenced the end of a years-long partnership between the two tech giants it also made their rivalry stronger. M1-based Macs deliver much faster performance and power efficiency than Intel-based Mac and Pcs but in its new marketing ads, Intel has been pointing out the poor gaming experience on M1 and Intel-based Macs are.
Furthermore, Intel announced that it will introduce five sets of chipmaking technologies in the next four years to regain its market position by 2025 and win back Apple’s business by making better chips. Reportedly, the M1 chip has drastically impacted Intel’s market share.
The report states:
For TSMC, After 2023, Intel has the opportunity to become the top three customers and become one of the main sources of profitable growth every year.
In addition to Apple’s largest iron coffee maker, Intel will be the second major customer to adopt the 3nm process, and it is very urgent for production capacity. With Intel’s HPC large order, the recovery of huge investment costs will accelerate. It is expected in 2023. Intel has a good chance to rank among the top three customers of TSMC and become one of TSMC’s main profit sources.