Obviously TSMC doesn't care about VC's, but the same reason why VC's prefer a large number of small customers still applies.
This is intriguing and I would appreciate if possible to get any sources to read up on this?
When people see small number of large customers, the implication is you are basically just running an outsourced dev/consultant/staff aug shop. Less product vision and ability to "scale".
I think the caveat/variable is "all else being equal or close to equal."
If having 10 customers will net you $10 total per month, and having one large customer will net you $100 per month, it is really hard to justify going with the $10 customers. But if those 10 customers will net you $10 EACH per month, then the 10customers is a better situation.
Especially for a new untested company no customer is sure they actually need yet