NVIDIA became TSMC's second largest customer, only after Apple

Fiscal year 2023 can be considered a brilliant milestone in the development history of 'Team Green'. Successfully embracing the global AI craze has brought the company to new heights, becoming one of the largest businesses in the world. At the end of the trading session on February 23, Nvidia's market capitalization surpassed the $2,000 billion mark, bringing the company to third place on the list of most valuable companies in the US, just behind Microsoft and Apple. .

The demand boost in the supply chain has prompted NVIDIA to deepen its cooperation with TSMC on both a financial and technological basis. That is also the reason why NVIDIA skyrocketed to become the main customer of the Taiwanese semiconductor giant in less than a year.

According to TSMC's fiscal 2023 earnings report, NVIDIA has become the second largest customer, with orders said to be worth up to $7.73 billion, accounting for 11% of the company's total revenue. . This number is reasonable considering the number of AI GPUs sold by NVIDIA in the previous year, and NVIDIA's impressive sales also created a supply bottleneck from TSMC in particular and affected the entire industry. semiconductor industry in general. Above, Apple is still TSMC's main customer, accounting for 17.52 billion USD and 25% of the Taiwanese semiconductor company's total revenue by 2023. Other companies such as MediaTek, AMD, Qualcomm, Broadcom, Sony and Marvell were 'responsible' for the rest of TSMC's financial growth last year.

Both NVIDIA and Apple have established deep relationships with TSMC, so will always be a priority as the company deploys next-generation processes. NVIDIA has indeed made great strides in establishing its presence in the global supply chain, as the company has built relationships with Samsung Foundry and IFS in an effort to diversify its supply. Even so, it seems like Team Green wants to stick with TSMC for the long term, which shows that the company could play a huge role in the future development of the Taiwanese giant, potentially surpassing TSMC. via Apple if things continue at their current pace.

David Pac

Update 05 March 2024