# TSMC’s Founder Reflects on Intel’s Missed Opportunity in iPhone Chip Production
In the realm of semiconductor manufacturing, few entities hold as much influence as Taiwan Semiconductor Manufacturing Company (TSMC). As a crucial collaborator for Apple, TSMC fabricates chips for the tech titan’s extensive range of products, aiding in the creation of hundreds of millions of units annually. Nonetheless, an intriguing segment of Apple’s chip production history involves Intel, a corporation that once aimed to break into the iPhone chip market but ultimately missed the mark.
## A Glimpse into the Past: Intel’s Bid for iPhone Chip Production
During a recent episode of the Acquired podcast, TSMC’s founder, Morris Chang, reflected on a critical moment in 2011 when Apple contemplated reallocating some of its iPhone chip production to Intel. At that point, Intel remained a leading force in the PC chip arena, producing processors for Apple’s Mac lineup. However, their attempt to enter the iPhone chip sector failed to leave a memorable impact on Apple’s executives.
Chang recounted a discussion with Apple’s Chief Operating Officer, Jeff Williams, who informed him that conversations with Intel needed to be halted. Williams articulated that Intel’s senior management had approached Apple CEO Tim Cook, showing interest in taking over the iPhone chip production. Despite this possible challenge, Chang was undeterred.
“I wasn’t particularly worried because in 2011, Intel was no longer a name that you would hear and feel compelled to respect,” Chang asserted. His assurance arose from a broader awareness of Intel’s standing in the industry, especially among its current clientele.
## Intel’s Reputation and the Foundry Model
Chang’s observations highlight a crucial element that influenced his lack of worry regarding Intel’s aspirations. He mentioned that prior to Apple becoming a TSMC client, he had engaged with numerous Intel customers in Taiwan, primarily within the PC sector. The feedback was largely negative; many of these companies voiced dissatisfaction with Intel’s tactics, suggesting that the tech giant behaved as though it was the only viable supplier available.
“None of them were fond of Intel. Intel consistently acted like they were the sole option,” Chang noted. This viewpoint was shared by many of Intel’s customers, who desired alternative suppliers to lessen their dependence on the company.
During a lunch meeting at Apple’s headquarters, Cook assured Chang that there was no cause for alarm regarding Intel’s abilities as a foundry. “There’s no need to worry,” Cook reportedly stated, stressing that Intel lacked the necessary expertise to function as a foundry—a vital element for producing chips at scale for various clients.
## The Aftermath: TSMC’s Ascendancy
In the end, Apple’s choice to remain with TSMC proved advantageous for both parties. TSMC has since reinforced its status as a frontrunner in semiconductor manufacturing, consistently providing state-of-the-art chips that power Apple’s offerings. The collaboration has enabled Apple to innovate swiftly, preserving its competitive edge within the tech sector.
Chang’s reflections on Intel’s missed chance serve as a testament to the fast-paced nature of the semiconductor landscape and the significance of adaptability and customer relations. While Intel continues to be a strong competitor in the field, its inability to seize the opportunity in iPhone chip production underscores the difficulties of transitioning from a traditional chip manufacturer to a foundry model.
## Conclusion
The narrative of TSMC and Intel’s brief encounter in the iPhone chip production domain is a captivating chapter in the progression of the tech industry. Morris Chang’s insights offer a distinct viewpoint on the challenges and perceptions that influenced this critical point. As TSMC thrives as Apple’s primary chip supplier, the lessons gleaned from Intel’s experience serve as a crucial reminder of the importance of customer satisfaction and the capacity to adjust to the constantly evolving technological landscape.
For those eager to delve deeper into this subject, the complete interview with Morris Chang can be viewed [here](https://youtu.be/FZItbr4ZJnc?si=x4IMJdUI2YGICrfm). What do you think about Chang’s remarks regarding Intel’s potential involvement in iPhone chip production? Share your thoughts in the comments below.
