# TSMC manufactures NVIDIA and Apple’s AI chips via foundry model

Digest AI · Hardware & Compute · published 2026-09-30T06:23:00Z

Canonical: https://digestai.news/story/tsmc-manufactures-nvidia-and-apples-ai-chips-via-foundry-model

## Summary

TSMC, a Taiwanese semiconductor manufacturer, specializes in producing chips designed by other companies like NVIDIA and Apple under a **pure-play foundry** model. Unlike chipmakers that design and sell their own products, TSMC focuses solely on manufacturing, taking designs from clients and turning them into finished semiconductors. This relationship is critical for AI growth, as TSMC’s high-performance chips—such as those used in NVIDIA’s AI GPUs—enable the computational demands of modern AI systems.

The company’s financials reflect its dominance: in **2025**, TSMC reported **3.809 trillion TWD** in revenue—a **31.6% increase** from 2024—and **1.7179 trillion TWD** in net income, up **46.4%**. Its gross margin stood at **59.9%**, while operating and net profit margins were **50.8%** and **45.1%**, respectively. AI-driven demand, particularly for high-performance computing (HPC), now accounts for **66%** of its Q2 2026 revenue. TSMC also began **2nm mass production in Q4 2025**, with **3%** of wafer revenue from that node in Q2 2026, alongside **30%** from **3nm** and **33%** from **5nm**. The company is expanding overseas, including a **2024-launched plant in Japan’s Kumamoto Prefecture**, to mitigate geopolitical risks like supply chain disruptions.

## Key points

- TSMC manufactures NVIDIA and Apple’s AI chips under a foundry model, not designing its own products
- AI demand drove 66% of TSMC’s Q2 2026 revenue, with 2nm chips contributing 3% of wafer revenue
- TSMC’s 2025 revenue hit 3.809 trillion TWD, up 31.6% year-over-year, with net income at 1.7179 trillion TWD

## Why it matters

TSMC’s foundry model underpins AI’s hardware ecosystem, supplying chips for NVIDIA’s GPUs and Apple’s devices. Its financials and advanced manufacturing (like 2nm) track AI’s growth, while overseas expansion mitigates geopolitical risks. Without TSMC’s scalability, AI’s computational demands couldn’t be met.

## Sources

1. [I looked into TSMC | What is the company that "makes" NVIDIA's AI chips?](https://note.com/bright_hawk7892/n/n35223fd790cd?hl=en) (note.com, 2026-09-30)
2. [Know 5 Semiconductor Companies and AI News Will Suddenly Make Sense—Looking Only at NVIDIA Is Not Enough](https://note.com/mindful_lab/n/n0da3bdec7cb0?hl=en) (note.com, 2026-09-30)

## Cite

Digest AI, "TSMC manufactures NVIDIA and Apple’s AI chips via foundry model", 30 September 2026, https://digestai.news/story/tsmc-manufactures-nvidia-and-apples-ai-chips-via-foundry-model

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