TSMC Senior Vice President Kevin Zhang indicated that mobile's share of the semiconductor market is declining to approximately 20%, while AI/HPC is projected to dominate at 55% and become the primary growth engine. This shift means Apple is no longer TSMC's most important customer, impacting its negotiating position for foundry pricing. The pattern mirrors Apple's loss of pricing power with memory suppliers like Samsung, SK Hynix, and Micron, as AI demand now dictates pricing.
Foundry capacity allocation is now driven by AI/HPC demand, making Apple a less critical customer and enabling higher pricing for leading-edge wafers.