In Profile: How Morris Chang Built TSMC Into a Chipmaking Colossus
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On Jan. 29, Nvidia Corp. CEO Jensen Huang landed in Taiwan and headed straight to the residence of Taiwan Semiconductor Manufacturing Co. Ltd. (TSMC) founder Morris Chang in Taipei’s Dazhi area. Later that evening, the two were spotted dining at a well-known local restaurant. In photos circulating online, Chang, seated in a wheelchair, appeared with a head of white hair and his characteristic high cheekbones, looking spirited despite his advanced age.
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- Nvidia CEO Jensen Huang met TSMC founder Morris Chang in Taiwan, highlighting their pivotal roles in the semiconductor and AI industries; Nvidia’s market cap reached $5 trillion, and TSMC leads in advanced chip-making.
- Morris Chang’s journey spanned war-torn China, top US universities, a Texas Instruments executive role, and TSMC’s founding in 1987, establishing the world's dominant chip foundry.
- TSMC holds a 70.2% global foundry market share (Q2 2025), with technological leadership in sub-3nm production and global expansion beyond Taiwan.
1. On January 29, Nvidia CEO Jensen Huang visited Taiwan and met with TSMC founder Morris Chang. Their meeting, which included a dinner in Taipei, was highly publicized and significant, bringing together the leaders of the world’s leading AI computing and semiconductor manufacturing companies. Nvidia’s market capitalization at the time reached close to $5 trillion, while TSMC maintained its status as the premier producer of the world’s most advanced semiconductors, being the first to mass-produce 2-nanometer chips.[para. 1][para. 2]
2. The relationship between Huang and Chang dates back more than 20 years, originating from a critical moment in 1997 when Nvidia was close to bankruptcy. After a pivotal phone call from Chang, Nvidia and TSMC began an exclusive manufacturing partnership that proved decisive for Nvidia’s survival and subsequent growth. Huang has repeatedly acknowledged that Nvidia would not exist today without TSMC.[para. 3]
3. Morris Chang, born in 1931, is a central figure in the semiconductor industry. His early life was shaped by displacement during wartime China, moving across cities to escape conflict. As a teenager, he left for the U.S., where he became a citizen and started his technology career after three decades in the American tech sector. In 1985, at age 54, Chang moved to Taiwan and after analyzing industry trends and talent, founded TSMC, eventually making it irreplaceable in the global economy.[para. 4]
4. According to his autobiography, Chang’s early academic ambitions were more artistic than technical, with a passion for writing and classical music. Practical concerns during his youth ultimately redirected him into commercial and engineering studies. In 1948, amidst the Chinese Civil War, he moved to the U.S. for education.[para. 5][para. 6]
5. At age 18, Chang entered Harvard University as its only Chinese freshman (of 1,100), majoring in engineering but also immersing himself in Western culture. He later transferred to MIT, earning a bachelor’s and master’s degree in engineering, before entering the workforce after failing his doctoral exams. He then began his career in semiconductors.[para. 7][para. 8]
6. Chang started at Sylvania Electric Products in 1955, learning semiconductor basics during the industry’s earliest days. Despite technical successes, Sylvania’s semiconductor division was unprofitable, and Chang soon moved to Texas Instruments (TI), where he rose through the ranks to become a group vice president, responsible for global semiconductor operations. However, strategic shifts in TI’s direction led to professional setbacks for Chang, resulting in his resignation in 1983 after a brief tenure at General Instrument and eventually accepting an offer to move to Taiwan.[para. 9][para. 10][para. 11]
7. As ITRI president in 1985, Chang proposed the creation of a dedicated foundry business model, leading to the foundation of TSMC. Despite skepticism and difficulties finding investors during a semiconductor slump, Chang secured backing primarily from the Taiwan government (48.3%) and Philips (27.6%), registering TSMC in 1987 with $145 million in capital.[para. 12][para. 13][para. 14]
8. In TSMC’s early years, Chang targeted Western markets and won a breakthrough order from Intel in 1988, which certified TSMC’s capabilities and attracted further contracts from industry giants. TSMC went public in Taiwan (1994), New York (1997), and achieved $1.1 billion in revenue by 1995, but top talent still preferred vertically integrated manufacturers.[para. 15][para. 16][para. 17]
9. To tip the balance, Chang pushed for technology leadership in 1997, ramping R&D spending. TSMC’s breakthrough with 28-nanometer technology secured its entry into the smartphone market, while resolving quality issues and compensating Nvidia preserved that essential partnership. A risky bet on 20-nanometer technology won Apple’s trust despite initial contract losses to Samsung.[para. 18][para. 19][para. 20][para. 21]
10. TSMC’s aggressive investment allowed it to leapfrog Intel at 7nm, and it continues pushing with anticipated 1.4nm chips by 2027. In Q2 2025, TSMC controlled 70.2% of the global foundry market per TrendForce, with ongoing expansion into the U.S., China, Japan, and Germany, cementing its geopolitical centrality.[para. 22]
- Nvidia Corp.
- Nvidia Corp. is a leading company in the semiconductor industry, with its market capitalization reaching $5 trillion due to its role in the new generation of artificial intelligence. Its CEO, Jensen Huang, has a longstanding relationship with Morris Chang, founder of TSMC, whose manufacturing partnership saved Nvidia from near bankruptcy.
- Taiwan Semiconductor Manufacturing Co. Ltd.
- Taiwan Semiconductor Manufacturing Co. Ltd. (TSMC) is the world’s largest contract chipmaker, founded by Morris Chang. It mass-produces advanced semiconductors and holds a strong position in cutting-edge chip manufacturing technology, including 2-nanometer processes. TSMC became a dedicated foundry, manufacturing chips for others without designing its own. It's a critical supplier for companies like Nvidia and Apple, and its market dominance makes it strategically significant globally.
- Sylvania Electric Products
- Sylvania Electric Products was one of the few-dozen semiconductor companies operating in the US in 1955. Morris Chang began his professional career there, leading a team that developed various germanium transistors and presenting his first academic paper. Despite technical successes, the semiconductor division faced persistent losses due to issues coordinating research, production, and sales.
- Texas Instruments Inc.
- Texas Instruments Inc. (TI) was an early leader in the semiconductor industry. Morris Chang, founder of TSMC, built his reputation there, continuously improving manufacturing quality for IBM transistors. He climbed the corporate ladder, becoming a group vice president for TI's global semiconductor business, effectively the number four executive. He later left TI due to a strategic shift towards consumer products.
- IBM Corp.
- IBM Corp. was a customer of Morris Chang when he worked at Texas Instruments Inc. Chang continuously improved manufacturing quality for transistors produced for IBM, helping him establish his reputation in the semiconductor industry.
- General Instrument Inc.
- General Instrument Inc. was Morris Chang's employer for one year following his departure from Texas Instruments in 1983. After this brief stint, Chang accepted an invitation to move to Taiwan to continue his career in Asia.
- Philips
- Philips, the Dutch electronics giant, was a crucial early investor in TSMC. In 1986, when TSMC was fundraising, Philips uniquely expressed willingness to invest, ultimately providing 27.6% of the total capital. This investment was vital for TSMC's formation, as major players like Intel and Texas Instruments had rejected proposals to invest in the pure-play foundry model.
- Formosa Plastics
- Formosa Plastics was one of the firms that invested in TSMC when it was founded in 1987. The company contributed to the remaining capital after the Taiwan government's development fund and Philips invested 48.3% and 27.6% respectively.
- Intel Corp.
- Intel Corp. is a major player in the semiconductor industry. In 1988, they outsourced the manufacturing of 1.5-micron microcontrollers to TSMC, validating TSMC's capabilities. Later, Intel also outsourced 1.2-micron DRAM production to TSMC. Despite being a dominant force, TSMC eventually surpassed Intel in process technology at the 7-nanometer node and continues to lead in advanced chip manufacturing, leaving Intel trailing.
- Motorola
- Motorola, along with Intel and Texas Instruments, rejected Morris Chang's proposal to invest in a pure-play foundry in 1985. This was during a downturn in the global semiconductor industry, and these major players showed no interest in a company that would only manufacture chips for other firms. However, Motorola later became a client of TSMC, alongside other giants like Intel and Philips.
- General Electric Co.
- General Electric Co. is mentioned as the former employer of James Dykes, who was recruited by Morris Chang to serve as general manager when TSMC was officially registered in 1987.
- Apple Inc.
- Apple Inc. approached TSMC requesting 20-nanometer technology. To secure Apple's order, TSMC's founder, Morris Chang, decided to prioritize the development of the 20-nanometer process. Although Samsung initially gained an advantage with 16-nanometer technology, Chang's investment in 20-nanometer still won Apple's trust.
- Samsung
- Samsung is an Integrated Device Manufacturer (IDM) that designs and manufactures its own chips. It was mentioned in the context of competition with TSMC in chip manufacturing. Notably, Samsung developed 16-nanometer technology ahead of TSMC and was chosen by Apple as the contract maker for its mobile processors in the second half of 2013.
- 1931：
- Morris Chang is born in Ningbo, Zhejiang province.
- By 1945：
- Chang and his family lived in several Chinese cities as refugees, eventually reaching Chongqing.
- 1945：
- Following the end of World War II, Chang's family returns to Shanghai.
- 1948：
- Amidst the Chinese Civil War, Chang, as a university student, leaves for the U.S. for education.
- 1949：
- At age 18, Chang enters Harvard University.
- 1950：
- Chang transfers from Harvard to MIT.
- 1953：
- Chang earns his bachelor’s degree in mechanical engineering from MIT.
- 1954：
- Chang earns his master’s degree from MIT.
- 1955：
- Chang begins his professional career at Sylvania Electric Products in Boston.
- December 1956：
- Chang presents his first academic paper on germanium transistors.
- 1959：
- Chang joins Texas Instruments Inc.
- 1961：
- TI sends Chang to Stanford University to pursue a doctorate.
- 1967：
- Chang becomes departmental vice president and general manager of TI's integrated circuit department.
- 1972：
- Chang becomes group vice president responsible for TI's global semiconductor business; TI shifts strategy to consumer products, putting pressure on the semiconductor division.
- 1978：
- After five difficult years, Chang resigns his position as group vice president at TI.
- 1983：
- Chang leaves TI after a demotion to head of quality and productivity.
- 1984：
- Chang completes a one-year stint at General Instrument Inc.
- August 1985：
- Chang officially becomes president of ITRI in Taiwan.
- 1985：
- Chang proposes the concept of a dedicated foundry; global semiconductor industry in downturn; major US chipmakers reject his proposal.
- August 1986：
- TSMC completes fundraising with $145 million in capital.
- 1987：
- TSMC is officially registered with Chang as chairman.
- 1988：
- Intel outsources manufacturing of its 1.5-micron microcontrollers to TSMC, marking a turning point for the company.
- 1990：
- TSMC’s revenue hits NT$2.2 billion ($70 million).
- 1994：
- TSMC lists on the Taiwan Stock Exchange.
- 1995：
- TSMC’s revenue reaches $1.1 billion.
- 1997：
- TSMC lists on the New York Stock Exchange; Chang sets 'technology leadership' strategy and increases R&D spending; pivotal call between Chang and Huang saves Nvidia.
- 2001-2009：
- TSMC’s annual capital expenditure hovers between $2 and $2.5 billion.
- 2010：
- Chang raises TSMC capital expenditure to $5.9 billion to pursue 40nm and 28nm technologies.
- Second half of 2013：
- Apple chooses Samsung as contract maker for its mobile processors after shifting its technology roadmap.
- By 2025 Q2：
- TSMC controls 70.2% of the global foundry market according to TrendForce.
- Jan. 29, 2026：
- Nvidia CEO Jensen Huang visits TSMC founder Morris Chang in Taipei; summit between the two semiconductor leaders occurs.
- As of 2026：
- Morris Chang is 95 years old.
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