Morris Chang, founder of chip giant TSMC, has sharply criticized Intel’s strategies, suggesting that the company’s move into the chip manufacturing space was a mistake. He believes Intel would have been better off concentrating on the rapidly expanding artificial intelligence (AI) market.
Chang’s comments come amid the unexpected departure of former Intel CEO Pat Gelsinger, at a time when the company is facing significant financial and operational challenges. Speaking about the situation, Chang remarked, “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.”
Intel’s Struggles in the AI Race
Chang’s remarks underline a fundamental shift in the tech landscape. While Intel struggles to maintain its market share, competitors like Nvidia and AMD have made significant strides in the booming AI sector. Intel’s Gaudi AI acceleration unit, launched with much anticipation, has failed to deliver the revenue it aimed for. The company has also struggled to bring next-generation manufacturing technologies, such as the Intel 18A Node, to market as originally planned.
The Shift After Gelsinger’s Departure
The resignation of Gelsinger, who championed Intel’s manufacturing strategy, may signal a deeper shift in the company’s direction. The departure could prompt Intel to rethink its priorities and consider focusing more heavily on AI. Rather than continuing with its ambitious, yet uncertain, manufacturing expansions, Intel might find it more viable to consolidate its strengths or reorient toward the AI sector where the real growth lies.
At first glance, Chang’s criticism of Intel may seem harsh, but it reflects the current reality facing the company. If Intel wants to end its streak of disappointments, focusing on AI could be its best option.
