The crisis shaking Intel has sent ripples through the semiconductor industry. As one of the industry’s most venerable companies, Intel’s struggles are under intense scrutiny. The Dec. 2 departure of former CEO Pat Gelsinger has sparked widespread commentary, but few voices carry the authority of Morris Chang, the 92-year-old engineer who founded TSMC in 1987.
A Taiwanese citizen born in what’s now the People’s Republic of China and educated in the U.S., Chang has repeatedly demonstrated unparalleled expertise in his field. Despite his advanced age, TSMC dominates the chip industry with commanding authority. While Intel and Samsung remain competitors, TSMC boasts three times their combined market share in the integrated circuit (IC) manufacturing industry.
Chang Critiques Gelsinger’s Strategy
To Nvidia co-founder and CEO Jensen Huang, Chang is more than a semiconductor leader. “The world is full of successful people, but heroes are rare. There is a difference between success and impact. I think Morris—his career, his philosophies, TSMC, its strategy, its core values—is absolutely a study in the industrial revolution,” Huang said, underscoring his admiration for the TSMC founder.
“I don’t know why Pat resigned. I don’t know if his strategy was bad or if he didn’t execute it well.”
This sentiment highlights why Chang’s insights into Intel’s challenges command attention. “I don’t know why Pat resigned. I don’t know if his strategy was bad or if he didn’t execute it well,” Chang stated. “Compared with AI, he seemed to focus more on becoming a foundry. Of course, now it seems that he should have focused on AI.”
Chang’s perspective aligns with that of many industry analysts and pundits. Still, his insights carry weight as someone who knew Gelsinger personally. Just a month before his departure, Gelsinger traveled to Taiwan to negotiate with TSMC executives about manufacturing chips at its 2- and 3-nm nodes.
During this trip, Gelsinger met with TSMC President and CEO C.C. Wei and possibly other executives. While it remains speculative whether Chang was among them, his critique reflects a deep understanding of Intel’s challenges. Chang argues Intel should have prioritized AI chip design to compete directly with Nvidia.
Unsurprisingly, Chang criticized Gelsinger’s efforts to position Intel as a third-party IC manufacturer—a domain where TSMC excels with minimal competition.
Image | Taiwan Presidential Office
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