TSMC founder Morris Chang says Apple CEO Tim Cook told him that the reason why the Cupertino company chose TSMC over Intel as their custom chips supplier was because “Intel just does not know how to be a foundry.”
In a new YouTube interview with Acquired, Chang discuss how Apple briefly paused its discussions with TSMC in February 2011 when approached by Intel’s CEO about the U.S. chipmaker manufacturing Apple’s iPhone chips. Intel was already supplying CPUs for Apple’s Mac lineup.
Despite already having a partnership with Intel, Cook ultimately chose TSMC as its custom chipmaker. Chang says Cook’s 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. “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 says TSMC has been successful due to its responsive approach to the needs of the customer. “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.”
Following the pivotal decision by Apple, TSMC has thrived as Apple’s exclusive chipmaker, while Intel’s foundry business is still struggling to attract external customers.