Tim Cook's Early Concerns About Intel's Chip Manufacturing Paved the Way for TSMC Partnership

TSMC founder Morris Chang reveals in his autobiography that Apple CEO Tim Cook was unimpressed with Intel's chipmaking capabilities in 2011.

TSMC founder Dr. Morris Chang reveals in his autobiography that Apple CEO Tim Cook was not impressed with Intel's contract chip manufacturing capabilities back in 2011. This meeting played a crucial role in shaping the landscape of the semiconductor industry and solidifying the now dominant Apple-TSMC partnership.

Tim Cook's Early Concerns About Intel's Chip Manufacturing Paved the Way for TSMC Partnership

TSMC is Apple's primary chip manufacturer for all its devices, including the iPhone, MacBook, and iPad. While Apple briefly explored a dual-sourcing strategy with Samsung Foundry, quality issues reportedly led them back to relying solely on TSMC.

Dr. Chang recounts his initial discussions with Apple about manufacturing chips for the iPhone. Apple COO Jeff Williams, through a connection with Foxconn founder Terry Gou, facilitated a meeting between Chang and Cook. At the time, Apple was considering Intel as a potential chip manufacturer, causing a pause in negotiations with TSMC.

During a dinner at Apple headquarters, Cook reassured Chang that there was no need to worry. While not disclosing specifics about Intel's costs or yields, Cook expressed his dissatisfaction with Intel's performance as an original equipment manufacturer (OEM).

This pivotal moment, driven by Cook's early assessment of Intel's limitations, ultimately led to the forging of the highly successful partnership between Apple and TSMC, significantly impacting the trajectory of both companies and the broader semiconductor industry.

This is not investment advice. The author has no position in any of the stocks mentioned.

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