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TSMC founder Morris Chang has revealed that Apple CEO Tim Cook rejected Intel as an iPhone chip manufacturing partner in 2011, and told him that "Intel just does not know how to be a foundry."

tsmc-founder-morris-chang.jpg

In a new YouTube interview with Acquired, Chang recounts how Apple briefly paused discussions with TSMC in February 2011 when Intel's CEO approached Cook about manufacturing Apple's iPhone chips. At the time, Intel was already supplying processors for Apple's Mac lineup.

Despite the existing relationship, Cook ultimately chose TSMC over Intel after just two months of consideration. According to Chang, Cook's decisive comment about Intel's foundry capabilities came during a private meeting at Apple's headquarters in March 2011.

"I wasn't too worried," Chang said, explaining that TSMC had advantages over Intel in manufacturing capabilities and customer trust. "I knew a lot of Intel's customers in Taiwan, and none of them liked Intel. Intel always acted like they were the only guy for microprocessors."

Chang said that TSMC's success was built on its responsive approach to customer needs. "When the customer asks a lot of things, we have learned to respond to every request," he explained. "Some of them were crazy, some of them were irrational, but we respond to each request courteously. Intel has never done that."

The decision proved pivotal for both companies. TSMC went on to become Apple's exclusive chip manufacturer, producing all Apple silicon chips, including those for iPhone, iPad, and Mac.

Meanwhile, Intel's foundry business struggled for years to gain traction with external customers. Only recently did the company revamp its manufacturing strategy with the establishment of Intel Foundry, set up to produce integrated circuits for external clients. In September 2024, for example, Intel's foundry business secured Amazon’s AWS cloud services unit as a customer for custom AI chips.

Article Link: TSMC Founder Reveals Why Apple Chose Them Over Intel as Custom Chip Supplier
 
This interview slots very well with other things that have been known and released along the years.

Intel was completely geared towards producing their own stuff and when they weren't cutting edge anymore and mobile chips become increasingly relevant they weren't able to keep up.
 
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I am not sure the "I was not too worried" is honest, but in general I had similar experience working with companies that are still fighting for their growth, that do not consider themselves too good for their customers.

I tried to apply the same approach when I was leading a product line. This is not as easy as it sounds.
 
intel is cooked.

they managed to win throughout the 70s, 80s and 90s due to their foundry strength and close integration between the chip designers and the foundry - but those days are gone. They're now on an even or even slightly "less than" playing field.

AMD always had competitive or superior designs but the fab technology lead carried intel through the 20th century - but now TSMC ate their lunch and their designs are having to try and stand up on an inferior node and it just shows how weak their stuff is.
 
Having a monopoly like Intel and Windows once had gives companies the misguided feeling that they can just coast and focus on milking their customer with the delusion that no one will ever be able to compete with them.
 
This article doesn’t state Morris at one time worked at Intel. I would guess he saw what sucked at Intel and believed he could be better.
 
I feel zero sympathy for Intel reading this.

No matter how big you get — never, ever assume you cannot be disrupted.
Same could be said for Apple, in a way. Apple does too many things and is too distracted which inhibits their ability to make insanely great products now. They should have stayed out of the content business IMO. Big distraction for them, in spite of what others have argued, being a different team and all. Media content is an app and others could have handled that. Too many kinds and not enough sizes. For iPhone, iPad and Mac they should do a budget line in a few sizes and a premium line in a few sizes, and forgo all of the pricing ladder bull. Innovate, don't corporate. Their iPhone and iPad lines will continue to be needlessly confusing.
 
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Having a monopoly like Intel and Windows once had gives companies the misguided feeling that they can just coast and focus on milking their customer with the delusion that no one will ever be able to compete with them.
What’s instructive though, is that no government intervention was required because they weren’t misusing their monopoly power, like buying TSMC and putting them out of business.

It’s funny that the iPhone exists due to companies being allowed to make the products they THINK will succeed in the market. And, now, there are so many people willing to pull up the rug behind Apple making it harder for any company in the future to do the same. Joyfully dancing in the blood of the golden goose.
 
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Same could be said for Apple, in a way. Apple does too many things and is too distracted which inhibits their ability to make insanely great products now. They should have stayed out of the content business IMO. Big distraction for them, in spite of what others have argued, being a different team and all. Media content is an app and others could have handled that. Too many kinds and not enough sizes. For iPhone, iPad and Mac they should do a budget line in a few sizes and a premium line in a few sizes, and forgo all of the pricing ladder bull. Innovate, don't corporate. Their iPhone and iPad lines will continue to be an unnecessarily confusing mess.
Not really, Apple’s business doesn’t depend on them being the only solution, just the preferred solution among those with that most desired property of customers, currency. They’re not interested in a budget line because budget lines are for those trying to be PLENTIFUL over PROFITABLE.

They’re more than happy to leave the bargain basement to EVERYONE else because they have no interest in those customers.
 
Not really, Apple’s business doesn’t depend on them being the only solution, just the preferred solution among those with that most desired property of customers, currency. They’re not interested in a budget line because budget lines are for those trying to be PLENTIFUL over PROFITABLE.

They’re more than happy to leave the bargain basement to EVERYONE else because they have no interest in those customers.
Pls stop writing in CAPS like that. It's considered shouting and makes it hard to read. Apple are too distracted and focus too much on business and not enough to usage and product.
 
Pls stop writing in CAPS like that. It's considered shouting and makes it hard to read. Apple are too distracted and focus too much on business and not enough to usage and product.

I believe Apple's 1+ billion active and repeat customers, propelling Apple to being one of the most successful tech companies in the world, speaks volumes. Apple knows what it's doing, giving customers the products they love and want. Year after year after year.
 
TSMC founder Morris Chang has revealed that Apple CEO Tim Cook rejected Intel as an iPhone chip manufacturing partner in 2011, and told him that "Intel just does not know how to be a foundry."
Tim Cook made an excellent decision by rejecting Intel as an iPhone chip manufacturing parter and instead choosing TSMC. And that's precisely why he never should have been made CEO: Cook is extremely talented at supply chain management, and horrible at everything else. (Yes, Cook is extremely talented at making record profits, but that is not innovation. Micrsoft CEO Steve Ballmer was also extremely talented at making record profits, but it would be ludicrous to say he spurred innovation.) Steve Jobs should have chosen Apple's most innovation-focused employee, Scott Forstall, to be CEO, and should have kept Cook in his old position as head of supply chain management.
 
Where are you going to find tens of thousands top engineers working 12-15 hours a day? TSMC is not for the weaks, and their results show that.
 
Guys, even if you own AAPL you are still allowed to critique Apple. You're aware of that right? Whether you own stocks in a company, they are fair game for criticising and critiquing. They fixed their keyboard for the complaints and criticisms. They added ports back for the complaints and criticisms. When they fix their mouse, it will be the reason. And if they get their product lines in check the reason will be the same. Criticism is feedback and feedback helps companies do better and serve their users better. That's how it works. Apple is not a religion, Amen.
 
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It isn't that Intel doesn't know how to foundry, they've never really been in the business of supporting 3rd parties making chips in their fabs.

TSMCs entire business is about supporting fabless semiconductor companies. Intel has always been internally focused and doesn't have the institutional/corporate structure of supporting outsiders.
 
I feel zero sympathy for Intel reading this.

No matter how big you get — never, ever assume you cannot be disrupted.

14 years ago a bodybuilder in my gym was the Chief Operations Officer for a chip company.

He told me, 'Buy ARM. Apple will build laptops with their chips because Intel cannot go smaller'.

I wish I'd listened to him. 😭
ARM only started trading publicly about 1.5 years ago. They've done well but there are other tech options that are far better investments.
 
Apple and TSMC have done great things as partners and it shows in the profitability of both companies.

With DJT threatening tariffs on Taiwan-made chips, I wonder how TSMC and Apple will respond.
 
Guys, even if you own AAPL you are still allowed to critique Apple. You're aware of that right? Whether you own stocks in a company, they are fair game for criticising and critiquing. They fixed their keyboard for the complaints and criticisms. They added ports back for the complaints and criticisms. When they fix their mouse, it will be the reason. And if they get their product lines in check the reason will be the same. Criticism is feedback and feedback helps companies do better and serve their users better. That's how it works. Apple is not a religion, Amen.

Here's a tip... If you *really* want to influence Apple's products and the manner in which Apple does business, write a thoughtful/respectful and business-like letter to Tim Cook or Craig Federighi with your suggestions. You'll probably receive a reply.

What absolutely won't work, and not be taken seriously, are the constant sideways slams against Apple found on forums.
 
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