According to Morris Chang, founding chairman of TSMC, Apple CEO Tim Cook expressed skepticism about Intel's foundry ambitions, reportedly stating that Intel "didn't know how to be a foundry." This comment, made during a meeting where Chang was trying to convince Cook to let Intel manufacture Apple chips, highlights the perceived difference in expertise and experience between established foundry giant TSMC and Intel's relatively nascent efforts in the contract chip manufacturing business. Chang ultimately declined Intel's offer, citing their high prices and lack of a true commitment to being a foundry partner.
According to a report from Tom's Hardware, citing comments made by Taiwan Semiconductor Manufacturing Company (TSMC) founder Morris Chang during a recent interview, Apple CEO Tim Cook expressed significant doubts about Intel's ability to successfully transition into a competitive foundry business. Chang recounted a conversation he had with Cook, during which Cook purportedly stated, quite bluntly, that Intel "doesn't know how to be a foundry." This remark underscores the immense challenges inherent in the foundry business model, which requires not only cutting-edge semiconductor fabrication technology but also a deep understanding of client needs and a commitment to flexible and responsive customer service. Intel, traditionally focused on designing and manufacturing its own chips, is now attempting to pivot towards becoming a major contract manufacturer for other companies, a strategic shift that places it in direct competition with established foundry giants like TSMC. Cook's alleged comment, as relayed by Chang, highlights the skepticism surrounding Intel's prospects in this highly competitive landscape. The statement suggests that despite Intel's considerable technological prowess and vast resources, the company may lack the specific expertise and cultural mindset necessary to thrive as a contract chip manufacturer, a business that demands a different approach than the internally-focused model Intel has historically employed. This reported conversation offers a glimpse into the high-stakes competition unfolding within the semiconductor industry, as Intel seeks to reinvent itself amidst a rapidly evolving technological landscape and faces established players like TSMC, which has cultivated deep relationships with major clients like Apple over many years.
Summary of Comments ( 67 )
https://news.ycombinator.com/item?id=42868531
Hacker News commenters generally agree with the assessment that Intel struggles with the foundry business model. Several point out the inherent conflict of interest in competing with your own customers, a challenge Intel faces. Some highlight Intel's history of prioritizing its own products over foundry customers, leading to delays and capacity issues for those clients. Others suggest that Intel's internal culture and organizational structure aren't conducive to the customer-centric approach required for a successful foundry. A few express skepticism about the veracity of the quote attributed to Tim Cook, while others suggest it's simply a restatement of widely understood industry realities. Some also discuss the broader geopolitical implications of TSMC's dominance and the US government's efforts to bolster domestic chip manufacturing.
The Hacker News comments section for the article "Intel doesn't know how to be a foundry," Tim Cook reportedly told TSMC's CEO" contains a moderate amount of discussion, primarily focusing on the complexities and challenges of running a successful semiconductor foundry.
Several commenters highlight the intricate nature of the foundry business, emphasizing that it's not simply about manufacturing prowess. One commenter points out that building chips for other companies requires a deep understanding of their specific needs and design constraints, suggesting Intel might lack the necessary experience and flexibility in catering to diverse customer requirements. This sentiment is echoed by another commenter who mentions the importance of close collaboration and communication with clients, a skill they believe Intel hasn't honed as much as TSMC.
The discussion also touches upon the cultural differences between Intel and TSMC. One commenter speculates that Intel's historical focus on internal product development may have fostered a culture less amenable to the demands of external clients. Another commenter suggests that Intel's internal priorities and product roadmaps could potentially conflict with the needs of its foundry customers, creating tension and potentially delaying projects.
Some comments delve into the technical aspects of foundry operations, discussing the challenges of process technology migration and the importance of yield optimization. One commenter argues that Intel's struggles with its own process nodes might hinder its ability to offer competitive foundry services.
A few commenters express skepticism about the veracity of the reported conversation between Tim Cook and TSMC's CEO, suggesting it could be a strategic move by TSMC to undermine Intel's foundry ambitions.
Finally, some comments offer a more nuanced perspective, acknowledging Intel's potential to eventually succeed in the foundry business, but emphasizing the significant hurdles it needs to overcome. One commenter points out that Intel has vast resources and expertise, and with the right investments and strategic adjustments, it could become a formidable player in the foundry market.