Intel should have focused on AI rather than chipmaking, TSMC founder says
Fixes company code in lead paragraph.
By Wen-Yee Lee
TAIPEI, Dec 9 (Reuters) -Intel INTC.O should have focused on artificial intelligence rather than trying to become a contract chipmaker, the founder of Taiwan Semiconductor Manufacturing Co 2330.TW said on Monday, in relation to the recent departure of Intel's CEO.
Morris Chang, at an event to launch his autobiography, said he did not know why Pat Gelsinger left Intel but that it seemed the U.S. firm sought a new strategy as well as a new CEO.
Gelsinger was forced out of Intel earlier this month after directors felt his costly and ambitious plan to turn Intel around was not working and progress was slow, Reuters reported last week.
Gelsinger was attempting to restore the company's lead in making the fastest and smallest computer chips for other companies, a business model known as "foundry" - a crown it lost to TSMC - the world's largest chip contract manufacturer.
"I don't know why Pat resigned. I don't know if his strategy was bad or if he didn't execute it well...Compared with AI, he seemed to focus more on becoming a foundry. Of course now it seems that (Gelsinger) should have focused on AI," Chang said.
"They currently have neither a new strategy nor a new CEO. Finding both is very difficult," he added.
Intel did not immediately respond to a request for comment.
Setting lofty ambitions for manufacturing and AI capabilities among major clients, Intel lost or cancelled contracts under his watch and also offended TSMC, with Chang calling Gelsinger "a bit rude", according to a Reuters special report in October.
Chang last month released his memoir that recounts his life from 1964 to 2018 and includes some of TSMC's dealings with major customers such as Apple AAPL.O and Qualcomm QCOM.O, and how Intel turned down an invitation to invest in TSMC in the 1980s before becoming a key customer.
Reporting by Wen-Yee Lee; Writing by Brenda Goh; Editing by Bernadette Baum
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
