Morris Chang, 93, the founder of Taiwan’s foundry (semiconductor contract manufacturing) TSMC, highlighted the challenges faced by Samsung and Intel Corporation, which are falling behind in the competition with TSMC.
According to the Taiwan Economic Daily on Tuesday, Chang remarked during the launch event for his autobiography the previous day, “Samsung has encountered technical issues, and the current political situation in South Korea could negatively affect the company.” Regarding Intel, he commented, “They lack a new strategy.”
Chang explained that the ongoing political instability in South Korea could negatively impact the management of Samsung Electronics.
He appeared to be referring to the fact that while competitor nations offer substantial subsidies to their domestic semiconductor companies, South Korea’s support legislation has stalled due to President Yoon Suk Yeol’s martial law declaration and impeachment debates. The special semiconductor law, which the ruling party and the government had promoted, is now at a standstill due to the political turmoil.
In contrast, Japan announced a comprehensive economic plan at the end of last month, pledging 10 trillion yen (approximately $65.6 billion) to bolster its semiconductor industry. China has also established the “Big Fund,” its largest-ever semiconductor investment fund, amounting to roughly $45.4 billion.
Chang also pointed out Samsung’s technological challenges. He appeared to be referring to the yield rate issues Samsung faces following the aggressive adoption of Gate-All-Around (GAA) technology, which it introduced to outpace TSMC.
Turning his attention to Intel Corporation, Chang commented on their recent struggles, stating, “Intel Corporation has a problem with its strategy.” He analyzed that former CEO Patrick (Pat) Gelsinger rushed into expanding the foundry business and missed out on artificial intelligence (AI) opportunities. Chang added, “If Intel’s board selects a CEO with a clear strategy, their challenges will be easily addressed.”
TSMC, the global leader in the semiconductor foundry industry, is a key manufacturer of NVIDIA’s AI chips. It is reported that TSMC has recently achieved a 60% yield rate in its cutting-edge 2-nanometer process and will begin mass production early next year. TSMC’s Q3 revenue this year hit $23.5 billion, marking a 13% increase from the previous quarter. Its market dominance continues to grow, with their share rising from 62.3% to 64.9%.
Chang founded TSMC in 1987 in partnership with the Taiwanese government at 56, when many retired. Although he fully retired from TSMC in June 2018, he still significantly influences the global semiconductor industry.
