Intel's Challenges: Insights from TSMC Founder

TAIPEI (Reuters) – Intel (NASDAQ: INTC) should have prioritized artificial intelligence over becoming a contract chipmaker, according to Morris Chang, founder of Taiwan Semiconductor Manufacturing Co, in light of Intel's recent CEO departure.

At the launch of his autobiography, Chang commented on Pat Gelsinger's exit, suggesting Intel is in search of both a new strategy and a new CEO. Gelsinger was ousted earlier this month after the board deemed his ambitious turnaround plan to be ineffective and slow.

Gelsinger aimed to reclaim Intel’s lead in producing the fastest and smallest chips, venturing into the foundry business model that TSMC dominates. Chang remarked, “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.”

He added that Intel currently lacks both a new strategy and a new CEO, making it difficult to find solutions. During Gelsinger's tenure, the company lost or canceled contracts and reportedly offended TSMC; Chang described Gelsinger as “a bit rude.”

Chang recently published his memoir, detailing his life from 1964 to 2018, including TSMC's relationships with major clients like Apple (NASDAQ: AAPL) and Qualcomm (NASDAQ: QCOM), as well as Intel’s decision not to invest in TSMC in the 1980s despite becoming a crucial customer.

(This story has been refiled to fix the company code in paragraph 1.)