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Intel should have focused on AI rather than chipmaking, TSMC founder says
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Intel should have focused on AI rather than chipmaking, TSMC founder says
Dec 9, 2024 3:22 AM

TAIPEI, Dec 9 (Reuters) - Intel ( INTC ) should have

focused on artificial intelligence rather than trying to become

a contract chipmaker, the founder of Taiwan Semiconductor

Manufacturing Co ( TSM ) said on Monday, in relation to the

recent departure of Intel's ( INTC ) CEO.

Morris Chang, at an event to launch his autobiography, said

he did not know why Pat Gelsinger left Intel ( INTC ) but that it seemed

the U.S. firm sought a new strategy as well as a new CEO.

Gelsinger was forced out of Intel ( INTC ) earlier this month after

directors felt his costly and ambitious plan to turn Intel ( INTC )

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 ( INTC ) did not immediately respond to a request for comment.

Setting lofty ambitions for manufacturing and AI

capabilities among major clients, Intel ( INTC ) 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 ) and Qualcomm ( QCOM ),

and how Intel ( INTC ) turned down an invitation to invest in TSMC in the

1980s before becoming a key customer.

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