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Intel should have focused on AI instead of making chips, says TSMC founder

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TSMC founder, Morris Chang, during the launch of his autobiography, in Taipei, Taiwan on November 9, 2024. Photo: Reuters/Ann Wang

A Intel should have focused on artificial intelligence instead of trying to become a contract chipmaker, said Morris Chang, the founder of Taiwan Semiconductor Manufacturing Company (TSMC) this Monday (9), when commenting on the departure of Intel’s executive president. At an event launching his autobiography, he stated that he does not know why Pat Gelsinger left Intel, but that it seemed that the North American company was looking for a new strategy, as well as a new chief executive.

Gelsinger was forced to leave Intel earlier this monthafter directors felt their expensive and ambitious plan to turn around Intel wasn’t working and progress was slow.

The now former CEO had enjoyed a career at the company, before leaving and, years later, returning to take on the highest position. He arrived with a complicated mission: to restore the company’s leadership in making computer chips for other companies, a business model known as “foundry.”

READ MORE: He wanted to save Intel, but ended up destroying $150 billion in market value

Pat Gelsinger lost his position as CEO of Intel in early December.

Intel lost its leadership in this market to TSMC — currently the largest contract chipmaker in the world.

“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 to AI, he seemed to focus more on chip manufacturing. Of course, it now looks like (Gelsinger) should have focused on AI.”

MORRIS CHANG, FOUNDER OF TSMC

READ MORE: Intel leaves the Dow Jones index after 25 years

“Currently, they don’t even have a new strategy or a new chief executive. Finding both is very difficult,” he added.

Intel did not immediately respond to a Reuters request for comment.

Setting lofty ambitions for manufacturing and AI capabilities among major customers, Intel lost or canceled contracts under Gelsinger and also offended TSMC, with Chang calling him “a little rude,” according to a Reuters report in October.

READ MORE: How Boeing and Intel lost the ‘gold standard’ and became an emergency for the USA

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