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TSMC founder: Intel should have prioritized AI over foundry business

TSMC founder criticizes Intel's foundry pivot; says AI focus was crucial (Image source: Intel)
TSMC founder criticizes Intel's foundry pivot; says AI focus was crucial (Image source: Intel)
TSMC founder Morris Chang criticizes Intel's focus on becoming a contract chipmaker rather than developing AI capabilities, highlighting the challenges faced by the struggling tech giant following CEO Pat Gelsinger's departure and recent setbacks in AI hardware development.

Morris Chang, the person who founded TSMC, recently took a jab at Intel's strategy. He said the company should've focused more on developing AI instead of trying to become a contract chipmaker. Chang made these comments during the launch of his autobiography on Monday.

This comes right after Intel’s CEO Pat Gelsinger stepped down. The board wasn’t happy with how Gelsinger’s aggressive turnaround plan was progressing—or, well, not progressing. Under Gelsinger, Intel aimed to reclaim its position as the top manufacturer of chips for other companies, a spot that TSMC currently owns.

"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, taking a swing at Intel's direction. He also mentioned that Intel is now without both a clear strategy and a CEO, calling it a tough situation.

Chang's words hit hard, especially given how Intel’s been struggling with AI lately. The company recently announced it won’t hit its $500 million sales target for its Gaudi 3 AI accelerators this year, blaming software issues—another sign that the focus on AI may have been lacking.

Chang’s autobiography, which covers his life from 1964 to 2018, also throws some light on Intel’s past decisions. Like, he talks about how Intel passed on the chance to invest in TSMC back in the '80s—before eventually becoming one of its biggest customers. The book also outlines TSMC's relationships with companies like Apple and Qualcomm.

Source(s)

Reuters (in English) & TomsHardware (in English)

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> Expert Reviews and News on Laptops, Smartphones and Tech Innovations > News > News Archive > Newsarchive 2024 12 > TSMC founder: Intel should have prioritized AI over foundry business
Nathan Ali, 2024-12-11 (Update: 2024-12-11)