Under US disclosure rules, Taiwan Semiconductor Manufacturing Co. (TSMC) has revealed that Nvidia accounted for 11% of its revenue in 2023, according to financial analyst Dan Nystedt’s estimates.
In the previous year, Apple, known as “Client A” in TSMC’s report to The Securities and Exchange Commission (SEC) in the US, provided 25% of TSMC’s revenue, amounting to $17.52 billion. Nvidia, referred to as “Client B”, paid TSMC $7.73 billion, making up 11% of the Taiwanese company’s revenue. Dan Nystedt reported that the ten biggest customers of TSMC accounted for 91% of its net revenue in contrast to 82% in 2022, with other clients including MediaTek, AMD, Qualcomm, Broadcom, Sony, and Marvell.
Apple has been the largest client of TSMC for many years and is likely to retain this status in the coming years. Other clients have not provided more than 10% of TSMC’s net revenue for a long time, although AMD, MediaTek, and Qualcomm have been increasing their orders in recent years. The AI technology boom has led to unprecedented demand for Nvidia’s H100 and A100 accelerators, leading to increased orders from the firm.
Nvidia’s complex products, including AI accelerators H100 and A100, are not only manufactured at TSMC’s factories but also packaged using their proprietary CoWoS technology. As the demand for AI equipment grows, Nvidia’s share of TSMC’s revenue is set to increase in 2024. The company has already reserved production and packaging capacity to ensure stable product supply.
It remains to be seen whether AMD’s share of TSMC’s revenue will exceed 10%. The company’s EPYC server processors are selling well, and the high demand for its Instinct MI300 AI accelerators may also increase AMD’s share in TSMC’s revenue..
