The TSMC founder talked about how to secure Apple’s business in a rare podcast interview. Morrischang stated that it was TSMC’s reputation that supporting Intel in an iPhone contract. I felt it was a victory bet.
Chip business is intense and competitive. So what is it like to negotiate a contract with Apple, one of the largest customers in the town?
Morrischan, the founder of the 93 -year -old chipmating giant TSMC, has recently conducted an unusual interview, behind the scenes, seeing how it navigated the groundbreaking transactions to manufacture the iPhone chip. Ta.
It started with unexpected dinner, many listening, and some compromise.
In the early days of the smartphone revolution, Chang said that TSMC was located in the right place and accurately in an appropriate appropriate place.
“I quoted Shakespeare in an autobiography,” said Chang in the recent “acquisition” episode. “The problem of those collected in the flood is that there is a tide of good luck.
Chang said that the release of the TSMC’s 28 nanometer chip at a perfect moment.
However, Chan had been thinking about how to land Apple’s business for many years, but the company had a unique way to do business.
“Apple is a very close company,” said Chang. “If you want to talk to them, if you provide, if you know your service, they will tell you to leave. I know the same.
At that time, at a chance home, I was given an unexpected dinner with Apple’s boss, Jeff Williams. Chang has said that Williams has laid out the framework for potential transactions for TSMC to make iPhone chips.
“Casting our wafers, it’s like that. It’s pretty easy,” Chang remembered what Williams told him. “I listened. I think Jeff probably talked 80 % that night and talked 20 %.”
However, Apple wanted to generate a 20 -nanometer chip in TSMC. This was regarded as a one -step retreat from the 16 nanometer chip, which was regarded as the natural next step in TSMC’s casting.
“It was surprising to me now,” said Chang. “And frankly, I was disappointed because the progress after 28 was 16 years old.”
“Half step is a detour,” the founder added.
Chang said that Williams provided 40 % gross profit to TSMC. The TSMC founder believed that Apple was trying to be generous, but TSMC has already achieved 45 % gross profit.
Chang said that it was quiet and decided that dinner was not an appropriate time to open negotiations over prices.
Eventually, Chan has decided that TSMC has decided to produce only half of the chip supply that Apple is looking for. After a broadcast of his offer, Williams said he called for negotiations while Apple had a discussion with Intel, who made a chip on Apple’s Mac Computers.
Nevertheless, Chane said that he was not “worried” because TSMC felt that Apple was suitable for the standards he was looking for in the supplier.
“Technology -At that time, we thought we were almost the same as Intel,” said Chang. “Almost. In fact, we thought we were the same as Intel. Manufacturing, we thought we were better than Intel, and the trust of customers trusts Intel customers. I thought I trusted us more.
Eventually, Chan had lunch at Apple’s cafeteria and heard some good news from Tim Cook himself while carrying food trays to his office.
“He said he didn’t know how to become Intel to become a casting factory,” said Chang. “It’s very short, but it’s a very satisfying answer for me.”
Chane said that TSMC had a reputation for raising his feet by taking care of all customer concerns.
“I think Tim means that customers ask a lot,” said Chang. “We learned to respond to all requests. Some of them were crazy, some of them were unreasonable, but we responded politely to each request.
“I knew many of Taiwanese Intel customers. All PC manufacturers knew they were Intel customers. Nobody liked Intel,” he added. “Intel always behaved like the only man.”
Intel and Apple did not respond immediately to Business Insider comments before the release. TSMC’s spokesman refused to comment.
He borrowed billions of billions that Chang’s gambling was ultimately rewarded by gambling on investment in a 20 -nanometer casting.
“I bet on the company, but I didn’t think I would lose,” said Chang.
After the last conference with Williams sealed the contract, Chan told Apple that he should celebrate at a three -star restaurant.
“Jeff joked,” If you don’t like the price setting, you will probably go to McDonald’s, “Chang said.
Apple has been fast -forwarding today and is one of the biggest customers of TSMC, producing many Tech Giant custom design chips for iPhone, Mac, and iPad.
Last year, TSMC started producing custom A16 chips for Apple, one of the Phoenix factories. Currently, CEO’s Tim Cook states that Apple will start using a US chip for the first time in almost 10 years.
