Morris Chang, founder of Taiwan Semiconductor Manufacturing Co. (TSMC), has weighed in on Intel’s recent leadership shakeup, suggesting that the company should have prioritized artificial intelligence (AI) over its ambitions to become a leading contract chipmaker. His comments follow the departure of Intel’s CEO, Pat Gelsinger, earlier this month.
At an event launching his autobiography, Chang remarked, “I don’t know why Pat resigned or if his strategy was flawed, but compared with AI, he seemed more focused on building a foundry. In hindsight, the focus should have been on AI.” He also highlighted the challenges Intel now faces, stating, “They currently have neither a new strategy nor a new CEO. Finding both is very difficult.”
Gelsinger’s tenure was marked by an ambitious and costly attempt to restore Intel’s dominance in semiconductor manufacturing, a crown it lost to TSMC, the world’s largest contract chipmaker. Under his leadership, Intel sought to reinvent itself as a competitive foundry, but progress was slow, and the company lost several key contracts. Directors ultimately decided that his turnaround strategy was not working.
Chang, who described Gelsinger as “a bit rude” in a recent interview, referenced a history of tensions between the two companies. Intel’s shift in strategy under Gelsinger strained its relationship with TSMC, a major supplier to some of the world’s largest tech firms, including Apple and Qualcomm.
Intel, which has faced challenges in maintaining its edge against rivals like TSMC and embracing the AI boom, has yet to announce a replacement for Gelsinger or unveil a revised strategy. Chang’s remarks underscore the complexities Intel faces as it seeks to navigate industry shifts and regain its competitive footing.
As Intel searches for a new leader and strategic direction, the chipmaking giant finds itself at a critical crossroads, with its future hinging on its ability to adapt to the rapidly evolving semiconductor landscape.
