AMD Becomes TSMC's Third-Largest Customer
takyon writes:
AMD Becomes TSMC's Third Largest Customer
AMD's focus to produce all of its most advanced products at Taiwan Semiconductor Manufacturing Co. (TSMC) and increasing orders have made the company the foundry's third largest customer, according to estimates from Bloomberg and DigiTimes. Apple is still TSMC's No.1 customer and will remain so for the foreseeable future. But AMD's position ahead of Broadcom, Nvidia, and Qualcomm enables the company to negotiate better business terms, work closer with the contract maker of chips, and have an influence on development of next-generation nodes.
[...] AMD's share in TSMC's balance sheet is poised to grow as the company increases adoption of the foundry's advanced packaging technologies as well as embraces more expensive N5 for its upcoming Zen 4-based processors. Furthermore, once AMD absorbs Xilinx, it will be a considerably larger semiconductor company in general and therefore will use more of TSMC's services (and will pay more money).
[...] Bloomberg and DigiTimes estimated that Intel's input to TSMC's revenue as of December, 2021, was around 0.84% (though they do not divulge the exact period they considered as normally Intel's contribution to TSMC's earnings is significantly higher). Meanwhile, once Intel begins to use TSMC's leading-edge N3 technology (which is a rumor for now) in 2022 ~ 2023, its contribution may skyrocket all the way into the Top 3 of TSMC's clients.
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