Insights on Leadership and Business from Morris Chang, Founder of TSMC

In the realm of semiconductors, Morris Chang stands as a towering figure.

He founded Taiwan Semiconductor Manufacturing Co. (TSMC), the world's leading chip producer, which collaborates with tech giants like Apple, Nvidia, and Qualcomm. The company has thrived, especially with the rise of AI technology, elevating demand for its products.

As of now, at 94, Chang boasts a considerable wealth of $5.1 billion, according to Forbes.

Climbing the Corporate Ladder

During his tenure at Texas Instruments, Chang quickly moved up the ranks. In a 2007 conversation with SEMI, he attributed his rapid promotion to making noteworthy achievements in each role, such as significantly boosting production yields.

Embracing New Challenges

After years in the US, Chang made the pivotal decision to start TSMC in Taiwan, despite knowing it might reduce his earnings. He expressed in 2007 that the novelty and challenges it presented were too intriguing to pass up.

His philosophy was to chase passion over profit, observing, 'Follow what captivates you rather than just the financial gain.' This mindset eventually proved rewarding, with success and wealth naturally following.

The Value of Concentrated Learning

Chang emphasizes a centralized approach to manufacturing and learning. In a 2023 presentation at MIT, he stressed that efficiency increases as experience grows, which requires consistent production locales.

Principles of Workforce Management

Reflecting on past decisions at Texas Instruments, Chang revealed he opposed layoffs based on performance reviews, warning against the inherent subjectivity.

He argued, 'Layoffs based on subjective reviews would erode respect,' and advised against dismissals unless necessary for long-term needs, given the cost and effort of rehiring and training.

Commitment to Customer Service

Chang attributed a significant part of TSMC's competitive edge over Intel in securing an iPhone contract with Apple to its renowned customer service.

Even when client demands seemed unreasonable, TSMC responded courteously to all requests, enhancing its reputation and reliability in the industry.

Knowing When to Transition

Chang made the bold move to leave Texas Instruments without another position in sight. He felt his career at TI had reached its peak, lacking both interest and potential for future advancement.

This decision, albeit risky, became a foundational element of his enduring success in the industry.