Nvidia named second biggest customer with 11% revenue in 2023.

TLDR:

Key Points:

• Nvidia accounted for 11% of TSMC’s revenue in 2023, making it the second largest customer.
• Apple remained TSMC’s top customer, accounting for 25% of revenue in 2023.

According to estimates by financial analyst Dan Nystedt, Nvidia paid TSMC $7.73 billion in 2023, representing 11% of TSMC’s revenue. This makes Nvidia the second largest customer of TSMC, following Apple which accounted for 25% of TSMC’s revenue. The top 10 customers of TSMC, including companies like MediaTek, AMD, Qualcomm, Broadcom, Sony, and Marvell, accounted for 91% of the net revenue in 2023. Nvidia’s increased orders to TSMC were driven by a surge in demand for AI processors such as the H100 and A100, especially during the AI frenzy. As AI processor demand continues to rise, Nvidia’s share in TSMC’s revenue is expected to increase in 2024.

AMD, another major TSMC customer, is also likely to see an increase in its share of TSMC’s revenue as its datacenter-oriented EPYC processors and Instinct MI300-series products gain popularity. With Nvidia and AMD both relying on TSMC for advanced chip manufacturing, the semiconductor company is expected to see continued growth in revenue from these key customers.