Apple Loses Chip Throne; AI and Cloud Giants Throw a Supply Chain Block Party
KEY POINTS
- •Apple dominated the tech supply chain for over a decade but is losing influence to AI companies and cloud giants.
- •TSMC reported that high-performance computing chips, driven by Nvidia and hyperscalers, now dominate 58% of its revenue.
- •Foxconn's revenue from AI servers now surpasses its iPhone assembly business, highlighting the shift in supplier priorities.
After a decade of playing tech supply chain kingpin, Apple finally got dethroned—by a squad of AI nerds and cloud juggernauts with deeper pockets. At the forefront, TSMC, famous for cooking iPhone chips, revealed 58% of its revenue now comes from AI and hyperscale cloud chips powering ChatGPT and friends. CEO C.C. Wei isn’t shy: he called AI giants 'very rich' and isn’t babysitting iPhone chip orders anymore. Foxconn, once Apple’s assembly ace, now makes more cash from AI servers than squeaky iPhones. Even obscure supplies like Japan’s high-end glass cloth substrate are now auctioned to whoever pays upfront, leaving Apple’s engineers scrambling like it’s a Black Friday for chip parts.
Share the Story
Apple used to be the CEO of chip demand; now it’s the kid still begging for snacks at the AI & cloud dinner table.
TSMC just ghosted Apple for Nvidia and Amazon, proving in tech as in dating, money really does talk.
Foxconn making more from AI servers than iPhones is the 2026 version of your mom preferring WiFi over a landline.
Source: Businessinsider | Published: 1/16/2026 | Author: Alistair Barr
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