“Intel doesn't know how to be a foundry": TSMC founder tells how Intel tried to intercept Apple's chip production
Apple is one of the most desirable customers for manufacturers of chips and any other components of its devices. Especially when it comes to the iPhone, the company's flagship product. TSMC (Taiwan Semiconductor Manufacturing Company) is one of Apple's longstanding partners and remains so today.
In the Acquired podcast, TSMC founder Morris Chang spoke about the events of 2011, when Intel tried to take TSMC's place among chip manufacturing orders. This fragment was brought to the attention by 9to5Mac.
For example, in February 2011, Jeff Williams, then the head of international procurement at Apple, approached Chang in a short phone conversation:
We need to pause our discussions for two months because the highest level of Intel has approached Tim Cook and has asked Tim Cook to consider Intel.
It is worth remembering that at that time Intel was already a supplier of Mac processors. However, as Chang points out, it was about making chips for the iPhone. He also added that in those days, "Intel was no longer a name that you would, when you hear it, you would stand up and bow." And although he had to accept Williams' position, he "wasn't all that worried."
TSMC's founder explained his calmness by the fact that he was well acquainted with Intel's customers and the company's reputation:
Before Apple became our customer, I knew a lot of Intel’s customers in Taiwan—you know, all the PC makers are Intel’s customers. None of them liked Intel. Intel always acted like they were the only guy.
Later, Morris Chang met with Tim Cook at the Apple campus, where he heard a "very brief and comforting" statement about the situation from the Apple CEO over lunch:
There's nothing to worry about because Intel just does not know how to be a foundry.
Listen to the full podcast with Morris Chang (in English):
As a reminder, Intel has been going through some difficult times for some time now, and it is currently being considered for acquisition by such companies as ARM and Qualcomm. Even Elon Musk is negotiating with them in this regard (which, according to analysts, is unlikely to improve the company's situation).