Morris Chang’s founding of TSMC in 1987 transformed the global semiconductor industry. After nearly three decades at Texas Instruments (TI), where he became a key figure in their semiconductor division, Chang was passed over for the CEO role in the early 1980s, prompting his resignation. Around the same time, Taiwan, eager to shift from low-cost manufacturing to high-tech industries, offered Chang a unique opportunity: substantial funding, policy support, and autonomy to build a semiconductor ecosystem. Chang embraced this chance, identifying Taiwan’s skilled labor, government backing, and lower costs as ideal for his vision.
He pioneered the pure-play foundry model, a revolutionary idea at the time that focused exclusively on manufacturing chips for fabless companies rather than handling design and production. This approach enabled firms like NVIDIA and Apple to innovate more rapidly while outsourcing fabrication. TSMC’s specialization and scale quickly made it the global leader, now producing over 50% of the world’s chips and advancing critical technologies like AI and autonomous vehicles. Chang’s vision and Taiwan’s strategic support reshaped the semiconductor landscape and cemented Taiwan’s role in the global tech supply chain. Morris Chang retired from TSMC in June 2018, at which point Mark Liu became Chairman and C.C. Wei assumed the role of Chief Executive Officer.
My Take
TSMC’s story highlights the transformative power of visionary leadership when recognized and supported. While Texas Instruments overlooked Morris Chang’s potential, Taiwan embraced his ambition and provided the resources to realize it. This underscores a critical lesson: recognizing and empowering visionary leaders can unlock groundbreaking innovations and reshape entire industries, as Taiwan’s strategic partnership with Chang proved.
Jerry Junkins, who became CEO of Texas Instruments in 1985 instead of Chang, revitalized the company during his tenure, doubling its revenue and stabilizing its operations. In the end, TI also prospered.
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Link to article:
https://techovedas.com/why-tsmc-was-born-in-taiwan-not-in-u-s/
Credit: techovedas
This post was enhanced with AI assistance, thoroughly reviewed, edited, and reflects my own thoughts.