Apple Faces Capacity Constraints: AI Boom Shifts TSMC Priority Away from iPhones

This news highlights a significant shift in the semiconductor landscape, with the AI boom potentially disrupting established supply chain relationships. Apple's historical reliance on TSMC faces a critical challenge, requiring a strategic adaptation to secure future production capacity in the face of Nvidia's growing influence. This shift underscores the increasing importance of GPUs and specialized silicon for AI applications and their impact on traditional consumer electronics.

• •Apple is facing competition for TSMC production capacity due to the AI boom.
• •Nvidia was likely TSMC's top customer in at least one or two quarters in 2025.
• •The 15-year relationship between Apple and TSMC is being strained by the growing demand for AI chips.