TSMC Founder Reveals Why Apple Chose Them Over Intel as Custom Chip Supplier

[AlexMac89]

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.

PLEASE stop writing in shorthand like that. It breaks the flow having to decipher it and makes it harder to read. Apple is the poster child for their unique balance of profit growth with products and usage. Being consistently top ranked by customers, while generally holding the number one spot for company value, AND being priced at the top of the market would seem to dispute your assertion of “distracted”? They just aren’t running the business the way YOU want them to.

 

[antiprotest]

So Intel got arrogant, like Apple.

 

[Mac Fly (film)]

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.

How about 45º

 

[Mac Fly (film)]

PLEASE stop writing in shorthand like that.

k

 

[rp2011]

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.

Perhaps look into reading comprehension. No one said anything about government intervention or abuse. I said monopolies tend to believe they can use their position to coast along, milking their position until it's too late. Intel was the one dancing around their golden goose, believing they could coast forever. Don't get upset at people pointing out the obvious.

 

[brunerd]

"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."

Goddang right! Manners eff'ing matter!

 

[hans1972]

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.

Innovation in business has always been about revenue, costs and profits as an end result.

Companies don't do innovation for the sake of customers, products or technology but to improve revenue, costs, profits, efficiency etc.

 

[Marx55]

The key was the company Advanced Semiconductor Materials Lithography (ASML) and its Extreme UltraViolet (EUV) lithography technology and machine. It was and still is the only company capable of doing it. TSMC purchased such expensive machine (400 million dollars each), whereas Intel refused. The result is history:

Pat Gelsinger Out at Intel
Over a decade ago, Intel spent billions investing in Dutch multinational ASML, which is today the most important company in chips. It’s the only firm in the world that manufactures machines capable of pulverizing a ball of tin, using high-power lasers, such that it emits an extremely tight wavelength of ultraviolet light to efficiently carve circuits into silicon wafers, a process known as EUV.
Intel initially believed in the tech, even carving out a $4.1 billion stake in the company, then decided not to order the pricey machines. But Taiwan’s TSMC did — and went on to become the undisputed leader in silicon manufacturing[…]

Michael Tsai - Blog - Pat Gelsinger Out at Intel

 

[Nosadge2]

It's quite obvious Apple went with them because of TSMC's attractive logo.

 

[TheOldChevy]

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.

He could have taken Jonathan Ive ...

 

[svish]

Was a good read. Intel is so far behind and a lot of catching up is required. For now expecting TSMC to continue its lead.

 

[jido]

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.

A Foundry company is in the business of supporting 3rd parties making chips in their fabs.
Intel has not shown it is a good foundry company. The only customer they are competent at serving is Intel.

 

[Siriosys]

I can’t believe I watched that entire 2 hour and 54 minute interview with Morris Chang! But what a great story teller and just so inspiring to see a guy start a venture in his fifties which went on to become arguably the world’s greatest chip maker.

 

[kalsta]

Innovation in business has always been about revenue, costs and profits as an end result.

Companies don't do innovation for the sake of customers, products or technology but to improve revenue, costs, profits, efficiency etc.

That’s the ugly side of capitalism—the side that seems to forget that people are more than ‘human resources’ and life is more than money.

 

[Mac Fly (film)]

That’s the ugly side of capitalism—the side that seems to forget that people are more than ‘human resources’ and life is more than money.

Greed is a tendency of human nature, irrespective of the system it operates within. Would be great if there was less of it going around, but what can ya do.

 

[kalsta]

Greed is a tendency of human nature, irrespective of the system it operates within.

Very true. Man (and animals according to Orwell?) finds ways to bend any system to his own selfish ends.

Would be great if there was less of it going around, but what can ya do.

Ya can choose to live a different way.

 

[Mac Fly (film)]

Very true. Man (and animals according to Orwell?) finds ways to bend any system to his own selfish ends.


Ya can choose to live a different way.

Meant we can't carry the world around on our back. We can't will the world of greed, as much as that would be nice.

 

[kalsta]

Meant we can't carry the world around on our back. We can't will the world of greed, as much as that would be nice.

I know, you were saying you can’t fix the whole world, and that’s true of course. I didn’t spell it out, but hinted that by living unselfishly you can have a certain amount of influence. Maybe your circle of influence is small and only extends to your family and close friends. Or maybe it’s larger than you realise. It’s the starfish story. 🙂