As a key collaborator with Apple, TSMC manufactures chips for the company’s vast array of devices released annually. Interestingly, TSMC’s founder revealed that there was a time when Intel was given a chance to produce chips for the iPhone but ultimately fell short.
TSMC’s founder ‘was never concerned’ about the potential iPhone chip competition from Intel
In a recent chat on the Acquired podcast, TSMC’s founder, Morris Chang, shares insights into the company’s collaboration with Apple, among other topics.
A highlight of the conversation centers around February 2011, when Apple contemplated handing some iPhone chip manufacturing responsibilities to Intel.
During this time, Intel was still producing chips for Mac computers, but their trial period for iPhone chips reportedly left CEO Tim Cook less than impressed.
Chang recalls a conversation with Jeff Williams in which Williams mentioned, “We need to put our discussions on hold for two months because the top brass at Intel has approached Tim Cook about considering Intel.”
Chang elaborates that “Jeff Williams was referring to the iPhone.” He continues:
That was all he mentioned, and I wasn’t particularly anxious because in 2011, Intel wasn’t the prestigious name they once were… I certainly had to honor Jeff Williams’ request, but I was not overly concerned.
Later, Cook reportedly had a lunch meeting with Chang at Apple’s headquarters, where he reassured him, saying, “There’s nothing to worry about” since Intel lacks the know-how to operate as a foundry. Chang described this comment as “brief but very reassuring to me.”
Chang also mentioned that at that time, he was aware of Intel’s poor reputation among its customers:
Before Apple became our client, I was familiar with numerous Intel customers in Taiwan—essentially, all the PC manufacturers. None had a favorable opinion of Intel. Intel often behaved as if they were the only game in town.
He further noted that from the Intel customers he knew, “they all hoped for an alternative supplier.”
You can listen to the entire interview here.
What are your thoughts on Chang’s remarks regarding Intel potentially producing iPhone chips? Share your views in the comments.
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