Feng Huang Wang·2026-01-17 02:45Core Insights - Apple is losing its central position in the tech supply chain, as it is no longer the core customer for wafer fabs, substrate manufacturers, or key component suppliers [1] - The power dynamics in the supply chain are shifting towards AI giants like Nvidia, Amazon, Microsoft, and Google, which are now dominating the procurement of critical components [2][5] - TSMC's revenue from high-performance computing, primarily for AI chips, has risen to 58%, surpassing the 29% from smartphone processors, indicating a significant shift in focus [3] Supply Chain Dynamics - Companies that control the supply chain are more likely to succeed in competition, as they can secure better pricing and stable supply, leading to faster product launches and competitive pricing [2] - Memory chip manufacturers are reallocating production capacity from mobile and computer markets to meet the soaring demand for DRAM chips in AI data centers, resulting in rising memory prices [4][5] - Apple is facing increased competition for critical materials, such as high-end glass cloth used in chip substrates, as suppliers prioritize AI clients who offer long-term contracts [7] Manufacturer Adjustments - Foxconn, traditionally associated with iPhone assembly, is now generating more revenue from AI server clients than from consumer electronics, indicating a shift in business focus [8] - Despite these changes, Apple remains one of the largest component purchasers globally, but its influence over pricing, capacity allocation, and long-term planning is diminishing [8]