TSMC Founder Criticizes Intel's Strategic Shift

Morris Chang, the founder of Taiwan Semiconductor Manufacturing Co (TSMC), commented on recent leadership changes at Intel (NASDAQ: INTC) on Monday, stating that the company should prioritize artificial intelligence (AI) rather than its goal of becoming a contract chip manufacturer.

These remarks followed the departure of Intel's CEO, Pat Gelsinger, earlier this month. Speaking at an event for the launch of his autobiography, Chang expressed uncertainty about the reasons behind Gelsinger's departure and speculated that the American tech giant was seeking new direction and leadership.

Gelsinger's tenure at Intel was marked by an ambitious yet challenging plan aimed at regaining the company's dominance in the semiconductor foundry sector, which currently belongs to TSMC. During the event, Chang stated, "I don't know why Pat resigned. I don't know if his strategy was bad or if he executed it well... Compared to AI, he seemed to be more focused on being a foundry. Of course, it is now clear that (Gelsinger) needs to focus on AI."

This transition leaves Intel without a clear new strategy or a successor for the CEO position, a significant challenge for the company, according to Chang. Intel did not comment on Chang's observations.

Under Gelsinger's leadership, Intel faced setbacks, including losing or canceling contracts with major customers, which also led to tensions with TSMC. Chang described Gelsinger as "a bit rough" in a special report published by Reuters in October, indicating the strained relationship between the two semiconductor giants.

Chang's recently released memoir covers his professional journey from 1964 to 2018 and details TSMC's interactions with leading clients such as Apple and Qualcomm. The book also addresses a historical moment when Intel rejected the opportunity to invest in TSMC in the 1980s, a decision made before Intel became one of TSMC's significant clients.