TSMC Leads the AI Chip Boom, but Apple and Google Want More Leverage

Taiwan Semiconductor Manufacturing Company (TSM) remains in a strong position as AI chip demand continues to rise. However, two recent reports show that its largest clients are seeking greater control over costs, supply, and risk.

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Alphabet (GOOGL) has asked TSMC how much it could save by placing wafer orders for its next TPU chip on its own, rather than through MediaTek, according to analyst Ming Chi Kuo. The chip is said to be called Humufish, or TPU v8e, and is aimed for the second half of 2027.

Kuo said the move points to a “clear shift” in Google’s cost plan. That matters because AI chips are now one of the highest costs in the AI race. If Google can cut chip costs, it could help its cloud unit compete better with Nvidia (NVDA), while also giving it more room to sell its own TPUs to select clients.

At the same time, Apple (AAPL) has held “exploratory discussions” with Intel (INTC) and Samsung Electronics (SSNLF) to make main chips for its devices, Bloomberg reported. Apple still relies on TSMC for its core chips, but the talks show that even its most loyal clients want backup paths when supply is tight.

Meanwhile, TSM shares rose nearly 1% on Monday, closing at $401.61.

TSMC Still Has the Edge

For now, these moves do not point to a clear loss of business for TSMC. In fact, Google’s plan still seems tied to TSMC’s chip base. Also, Apple is said to have concerns about the scale and track record of non-TSMC options.

That gives TSMC a strong hand. Its chip tech, scale, and advanced package tools are still hard to match. Its CoWoS package tech remains a key part of the AI chip boom, while Intel is still trying to prove that its own package tech can work at mass scale.

Still, the shift is worth watching. Google wants lower AI chip costs. Apple wants more supply choices. Intel and Samsung want a larger role. As a result, TSMC may face more price and supply talks with its top clients over time.

For TSMC investors, the near-term outlook remains strong. AI demand is high, chip supply is tight, and TSMC remains the main name in high-end chip making. However, the long-term view is more mixed. TSMC is still the key player, but its biggest clients are now testing ways to gain more leverage.

Is TSM Stock a Buy, Hold, or Sell?

Turning to the Street, TSMC has a Strong Buy consensus, based on six analysts’ ratings. The average TSM stock price target is $465, implying a 15.78% upside from the current price.