TSMC Founder Critiques Intel’s Business Strategy, Suggests AI Focus Over Chip Foundry Ambitions

Morris Chang, the founder of TSMC, has weighed in on Intel's turbulent business strategy, questioning the company's move into chip manufacturing. Chang suggests that Intel would have been better served by focusing on the booming AI market instead of establishing itself as a foundry service provider.

In a recent statement, Chang remarked - TSMC's Founder:

“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 with AI, he seemed to focus more on becoming a foundry. Of course now it seems that (Gelsinger) should have focused on AI.

They currently have neither a new strategy nor a new CEO. Finding both is very difficult.”

Chang also highlighted the struggles Intel faces following CEO Pat Gelsinger’s unexpected retirement, including the challenge of realigning its business strategy and appointing new leadership.

Intel’s Struggles in AI and Foundry Markets

While rivals like NVIDIA and AMD have established strong footholds in the AI market with robust portfolios, Intel's Gaudi AI accelerators have failed to make a significant impact. At the same time, its foundry division, including the much-hyped 18A node, has yet to meet expectations or gain mainstream traction.

Intel's "jack of all trades" approach—spanning AI, foundry services, and chip design—appears to have diluted its focus. Chang’s critique underscores a broader industry sentiment that Intel might need to pivot away from foundry services and prioritize more lucrative opportunities like AI.

With Gelsinger no longer steering the ship, Intel faces a critical juncture. Whether the company will continue pursuing its foundry ambitions or shift focus remains to be seen. Industry watchers are keen to see if the company can regain its footing in the highly competitive semiconductor landscape.

Do you agree with Chang’s assessment of Intel’s strategy? Should Intel focus on AI instead of being a foundry? Let us know in the comments below!