TSMC founder Morris Chang

In this episode of Acquired, Ben Gilbert and David Rosenthal interview Dr. Morris Chang, the founder of TSMC, discussing key moments in TSMC's history, including the company's relationships with NVIDIA and Apple, and the birth of the fabless industry. Dr. Chang shares insights into TSMC's early strategies, the importance of the learning curve, and the company's approach to R&D and capital expenditures. The conversation covers specific events such as the 40-nanometer node challenges, the decision to pursue the 28-nanometer node, and negotiations with Apple, providing a detailed look into the decisions and partnerships that shaped TSMC's success. The hosts also reflect on the broader implications of TSMC's business model and its role in the semiconductor industry.

Outlines

Part 1: The NVIDIA Partnership and Crisis Management

Part 2: Strategic Decisions and Organizational Structure

Part 3: The Apple Era and Competitive Challenges

Part 4: Industry Insights and Business Philosophy

Part 5: Post-Interview Analysis and Conclusion

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Acquired

Part 1: The NVIDIA Partnership and Crisis Management

Introduction to the Interview with Dr. Morris Chang and the Beginning of TSMC's Relationship with NVIDIA

The 40 Nanometer Node Problem and Dr. Chang's Return as CEO

Resolving the NVIDIA Dispute and the Importance of Customer Relationships

Part 2: Strategic Decisions and Organizational Structure

Committing to 28 Nanometers and the Importance of R&D Investment

Board Opposition and the Functional Organization Structure

Combining Operations and the Unexpected Apple Opportunity

Part 3: The Apple Era and Competitive Challenges

The Dinner with Jeff Williams and Apple's Initial Proposal

Apple's Request for 20 Nanometer and the Financial Implications

Negotiating with Apple and the Threat from Intel

Evaluating Intel as a Competitor and Securing Apple's Business

Pricing Negotiations and the Shock of Apple's Orders with Samsung

Part 4: Industry Insights and Business Philosophy

The IBM Qualcomm Story and the Importance of Owning Technology

The Learning Curve and Bruce Henderson

TSMC's Unlikely Success and the Fabless Revolution

Part 5: Post-Interview Analysis and Conclusion

Post-Interview Analysis: The Genius of Not Competing with Customers and the Rise of ARM

The Learning Curve and Moore's Law

Carve-Outs and Thank You's

TSMC founder Morris Chang

Acquired

Part 1: The NVIDIA Partnership and Crisis Management

00:00Introduction to the Interview with Dr. Morris Chang and the Beginning of TSMC's Relationship with NVIDIA

Introduction to the Interview with Dr. Morris Chang and the Beginning of TSMC's Relationship with NVIDIA

09:33The 40 Nanometer Node Problem and Dr. Chang's Return as CEO

The 40 Nanometer Node Problem and Dr. Chang's Return as CEO

20:52Resolving the NVIDIA Dispute and the Importance of Customer Relationships

Resolving the NVIDIA Dispute and the Importance of Customer Relationships

Part 2: Strategic Decisions and Organizational Structure

35:57Committing to 28 Nanometers and the Importance of R&D Investment

Committing to 28 Nanometers and the Importance of R&D Investment

47:14Board Opposition and the Functional Organization Structure

Board Opposition and the Functional Organization Structure

55:07Combining Operations and the Unexpected Apple Opportunity

Combining Operations and the Unexpected Apple Opportunity

Part 3: The Apple Era and Competitive Challenges

1:07:09The Dinner with Jeff Williams and Apple's Initial Proposal

The Dinner with Jeff Williams and Apple's Initial Proposal

1:17:31Apple's Request for 20 Nanometer and the Financial Implications

Apple's Request for 20 Nanometer and the Financial Implications

1:25:05Negotiating with Apple and the Threat from Intel

Negotiating with Apple and the Threat from Intel

1:37:39Evaluating Intel as a Competitor and Securing Apple's Business

Evaluating Intel as a Competitor and Securing Apple's Business

1:46:46Pricing Negotiations and the Shock of Apple's Orders with Samsung

Pricing Negotiations and the Shock of Apple's Orders with Samsung

Part 4: Industry Insights and Business Philosophy

1:55:47The IBM Qualcomm Story and the Importance of Owning Technology

The IBM Qualcomm Story and the Importance of Owning Technology

2:04:04The Learning Curve and Bruce Henderson

The Learning Curve and Bruce Henderson

2:12:24TSMC's Unlikely Success and the Fabless Revolution

TSMC's Unlikely Success and the Fabless Revolution

Part 5: Post-Interview Analysis and Conclusion

2:21:10Post-Interview Analysis: The Genius of Not Competing with Customers and the Rise of ARM

Post-Interview Analysis: The Genius of Not Competing with Customers and the Rise of ARM

2:33:54The Learning Curve and Moore's Law

The Learning Curve and Moore's Law

2:47:04Carve-Outs and Thank You's

Carve-Outs and Thank You's