TSMC Founder Slams Intel’s Strategy, Calls Out Chipmaking Move

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TSMC’s founder, Morris Chang, has voiced a critical opinion regarding Intel’s current strategy, suggesting that the company should never have entered the chipmaking business. Intel is in such a dire condition, Chang suggests, that it is playing catch-up just to stay relevant, which would have been far better if they were in the fast-growing regime of artificial intelligence (AI) technology. Intel is having tough times both financially and strategically right now, which his comments come in the context of.

TSMC

TSMC Founder Criticizes Intel’s Strategy, Says It Shouldn’t Have Entered Chipmaking

Intel is going through a disruptive era in its history. The company is battling serious financial woes, which have now become even worse with CEO Pat Gelsinger’s surprise retirement announcement. This has raised concerns about what this means for the direction of the company and whether they can hold on to their position in the industry. The comments from Chang appear to highlight the challenges Intel faces as it seeks to reclaim its standing, with the company struggling to adjust to changes in the semiconductor landscape.

Chang is focused here on Intel’s move into the foundry business, which he believes has not been a successful investment. Though Intel’s foundry division — especially the highly anticipated 18A node — has received a lot of bellyaching praise and expectations, namely it hasn’t taken off in the mainstream. The division has been unable to make and deliver the advanced chips needed to compete with industry leaders. AMD and NVIDIA, on the other hand, have successfully leveraged the AI revolution, with both companies creating strong portfolios for AI-specific hardware. By contrast, Intel’s Gaudi AI accelerator lineup has not produced revenue comparable to those of its rivals, evidence that its AI business has not yet taken off as the company hoped.

Intel’s wide net and “jack of all trades” strategy seems to have not paid off as the company is struggling to balance a variety of business verticals. Without Gelsinger around, we’d expect Intel to pull the reins on new products and double down on its manufacturing prowess. This could mark a significant shift in the company’s strategy, possibly shifting away from its chip ambitions in favor of prioritizing its core manufacturing business moving forward.

FAQs

Why shouldn’t Intel have entered chipmaking?

TSMC’s founder believes Intel should have focused on AI, not foundries.

How is Intel performing in AI?

Intel’s AI business has struggled, lagging behind competitors.

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