The December 2022 issue of IEEE Spectrum is here!

Close bar

TSMC’s Morris Chang Says No to Apple, Qualcomm

The independent semiconductor foundry’s autonomy is worth more than a billion dollars.

2 min read
TSMC’s Morris Chang Says No to Apple, Qualcomm

Morris Chang, chairman and CEO of Taiwan Semiconductor Manufacturing Co. (TSMC), is no sellout. According to Bloomberg.com earlier this week, TSMC turned down billion-dollar investments from Apple and Qualcomm, each of whom wanted to be TSMC’s exclusive customer.

Having spent several hours talking with Chang last year, I could have told Apple or Qualcomm that their offer was a nonstarter. For one, Chang is big on loyalty. And going exclusive would have meant dumping long-term customers like Nvidia; TSMC does virtually all of NVidia’s manufacturing. Chang cares so much about his customers, Nvidia CEO Jen-Hsun Huang told me, that Chang showed up to visit Huang to sort out some questions about capacity in the middle of Chang's honeymoon. 

“That is the person he is,” Huang said, “so concerned about doing the right thing that he wanted to look me in the eye and hear it for himself.”

The outspoken executive is also big on control. Chang left a high-level job at Texas Instruments when it became clear his path didn’t lead to the executive suite, and, though in his 80s, has shown no signs of stepping down from the top post at TSMC. So I don't see him as someone who is going to put himself in the position of taking orders from another company, even for a billion dollars. Chang also remembers the days when startups had a hard time getting their products produced, and is proud that TSMCs existence fosters innovation. Innovation in recent years, he told me, would have been much slower without the existence of TSMC. I think he'd feel guilty if he had to close his doors to the next generation of startups.

All is not lost for Apple and Qualcomm—Chang is offering the companies exclusive use of a single factory; he’s just not giving them his whole company. And, given today’s tight semiconductor market, that’ll be an offer they can’t refuse.

For more insight into Chang, see Morris Chang: Foundry Father.

Follow me on Twitter @TeklaPerry.

 

The Conversation (0)

The Transistor at 75

The past, present, and future of the modern world’s most important invention

2 min read
A photo of a birthday cake with 75 written on it.
Lisa Sheehan
LightGreen

Seventy-five years is a long time. It’s so long that most of us don’t remember a time before the transistor, and long enough for many engineers to have devoted entire careers to its use and development. In honor of this most important of technological achievements, this issue’s package of articles explores the transistor’s historical journey and potential future.

Keep Reading ↓Show less