If you’re a founder, entrepreneur, or someone who loves understanding the DNA of great companies, the Acquired podcast episode featuring TSMC’s legendary founder, Morris Chang is a must-listen episode. It’s as if Thomas Jefferson himself were recounting the creation of a nation—but in this case, it’s the story of how TSMC became the backbone of the global semiconductor industry.
The hosts of Acquired, Ben Gilbert and David Rosenthal, have truly perfected their craft. They come prepared with outstanding research, knowing the pivotal milestones of their guests’ journeys. They ask insightful questions while leaving plenty of space for the guest to tell his story. The long-form format lets the conversation flow naturally, and as a listener, you feel like you’re part of something special.
Three hours and seven pages of notes later, I’m still processing the insights. Here are some of the highlights that I think every founder and business leader should know:
Key Lessons from Morris Chang’s Journey
- Early Vision: Learning Curve Theory in Action
While at Texas Instruments, Morris Chang brought groundbreaking ideas to semiconductor manufacturing, influenced by his collaboration with Bill Bain (founder of Bain Capital) and Bruce Henderson (founder of BCG). He applied the Wright Law (learning curve theory) to semiconductors, pricing them ahead of the cost curve. This meant sacrificing short-term profits to gain market share and achieve superior manufacturing yields, leading to long-term dominance. - The Fabless Model: “Go Where the Puck Will Be”
Chang’s vision for fabless semiconductor companies was revolutionary at the time. He foresaw a world where designing and manufacturing chips could be split into distinct industries, which became the core concept for TSMC. Starting TSMC at age 56 (!), Chang laid the groundwork for what would become an industry-transforming model. - Relentless Customer Focus
TSMC built its success on a reputation for being customer-centric. Chang famously prioritized partnerships and refused to compete with his customers, which allowed TSMC to earn the trust of key players like NVIDIA and Apple. - Relationships as Strategic Assets
When TSMC needed $10 billion to build the infrastructure required to fulfill Apple’s orders in 2008, Morris’s relationship with Goldman Sachs which started in the mid-1980s was instrumental in securing the funding. This underscores the power of long-term relationship-building in business.
Apple and TSMC: A Game-Changing Partnership
In 2024, Apple announced it would purchase 100% of TSMC’s output from its most advanced chip node. Apple is a notoriously hard-to-penetrate supplier network. For good reason, Apple keeps much of its R&D work as a closely guarded secret. So, despite multiple attempts to secure Apple as a customer, the direct approach did not work. So, Chang’s wife, Sophie Chang, and cousin of Foxconn founder Terry Gou, invited Jeff Williams, then COO at Apple, to dinner at the couple’s home in 2001. That social situation started the conversation that led to the biggest order in TSMC’s history.
This wasn’t an overnight win—it was the result of years of collaboration and TSMC’s ability to deliver at scale. To put it into perspective:
- In 2022, Apple accounted for 23% of TSMC’s revenue ($17 billion).
- NVIDIA made up another 10%, showcasing TSMC’s ability to win and retain top-tier customers.
Today, TSMC controls 64% of the global foundry market, with its closest competitor, Samsung, holding less than 10%. It’s one of the few $1 trillion companies not headquartered on the U.S. West Coast—proof that innovation thrives on a global stage.
Why Every Founder Should Listen
Morris Chang’s story is a masterclass in visionary leadership, calculated risk-taking, and relentless execution. Here are a few takeaways that stood out:
- Know your place in the value chain. TSMC didn’t try to be everything; they focused on high quality and lower cost (applying learning curve theory). The result is they are the best foundry in the world.
- Bet big on where the market is going. Chang’s foresight and willingness to sacrifice short-term profits for long-term market share were critical.
- Challenge your leadership team. Several times during its great trajectory, Chang shuffled the responsibilities of his senior leaders to meet the changing needs of the business
- Never underestimate relationships. From securing funding to winning major customers, trust and credibility were everything.
- Pay it Forward. Chang knew Asia would offer the best combination of high quality and low cost. Despite a very successful career in the U.S., he worked with his home country’s government to invest in Hsinchu Science Park in Hsinchu, Taiwan. Today 2/3 of all semiconductor manufacturing occurs in Taiwan which accounts for 15% of the country’s GDP.
If you’re a founder or business leader, grab a notebook, block out three hours, and dive into this podcast. The insights are worth every second..
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