TSMC founder Morris Chang has revealed that Apple CEO Tim Cook dismissed Intel as a potential iPhone chip manufacturing partner in 2011, citing the company’s lack of expertise as a foundry. In a recent interview with Acquired, Chang recounted how Apple briefly paused discussions with TSMC when Intel approached Cook with a proposal to manufacture iPhone chips. Despite Intel’s existing role as a Mac processor supplier, Cook ultimately chose TSMC, reportedly telling Chang in a private meeting, “Intel just does not know how to be a foundry.”
Chang expressed little concern over Intel’s bid, noting that TSMC had a strong reputation for meeting customer demands, unlike Intel, which he said acted as though it was the sole player in the microprocessor industry. He recalled that many of Intel’s clients in Taiwan were dissatisfied with the company’s approach. “None of them liked Intel. They always wished there was another supplier,” Chang said. Apple’s decision to partner with TSMC instead of Intel marked the beginning of a long-term relationship, with TSMC becoming Apple’s exclusive supplier for custom silicon.
TSMC’s willingness to adapt to Apple’s needs further solidified their partnership. Chang shared an example from 2014, when Apple insisted on using a custom 20-nanometer planar node instead of TSMC’s planned 16-nanometer FinFET technology. To accommodate Apple, TSMC adjusted its entire development roadmap, an approach that Intel had never demonstrated. This flexibility led Apple to shift entirely to TSMC for its A-series chips, eliminating Samsung as a secondary supplier.
Meanwhile, Intel struggled to gain traction in the foundry business, facing setbacks in securing major clients. Only in recent years has Intel revamped its manufacturing strategy, launching Intel Foundry in an attempt to compete with TSMC. In September 2024, the company secured Amazon’s AWS as a client for custom AI chips, marking a significant step toward revitalizing its foundry ambitions. However, Apple has shown no interest in returning to Intel for chip production, reaffirming its long-standing commitment to TSMC.
Chang’s insights highlight a crucial turning point in the semiconductor industry, where TSMC’s customer-first approach helped it outmaneuver a long-established giant like Intel. The decision made by Apple in 2011 not only shaped the company’s chip strategy but also contributed to TSMC’s dominance as the world’s leading semiconductor foundry.
