Maurice Chang is a name that resonates in the world of semiconductors, an industry that has become the backbone of modern technology. He is the visionary founder of Taiwan Semiconductor Manufacturing Company (TSMC), which he established in 1987 when he was 55 years old. Since then, TSMC has grown into a global giant, providing essential components for a wide range of devices including smartphones, computers, cars, and artificial intelligence systems. TSMC’s chips are at the heart of the technologies that have shaped modern life, and its client list includes some of the most prestigious names in the tech industry, such as Apple, NVIDIA, and Qualcomm.
Early Life and Struggles
Maurice Chang was born on July 10, 1931, in mainland China. His early years were marked by instability and upheaval, as he and his family were forced to move multiple times due to the turmoil of war that gripped China at the time. By the time he turned 18, Chang had lived in six different cities and attended a total of 10 different schools. This early experience in dealing with change and uncertainty would shape his resilience and adaptability throughout his life.
In 1949, he moved to the United States to pursue higher education, enrolling at Harvard University before transferring to the Massachusetts Institute of Technology (MIT) to study mechanical engineering. Despite his academic drive, Chang faced significant setbacks in his early career. He failed twice in his attempt to qualify for a doctoral program, which led him to make a bold decision: to enter the workforce instead of continuing his studies.
His first job offers came from two companies. One was from the Ford Motor Company, which offered him a salary of $479 per month. The other came from Sylvania, an electronics company, which offered him only a slightly higher salary. When Chang asked the Ford recruiter for a slight increase in salary, his request was denied. This moment of rejection proved to be pivotal, as it set him on a different path, prompting him to accept the offer from Sylvania.
The Semiconductor Industry
At Sylvania, Chang began his deep dive into the world of semiconductors. It was here that he started learning about transistors—the tiny yet essential components at the core of microchips. This was the beginning of Chang’s lifelong journey in the semiconductor industry.
Chang’s experience at Sylvania was an eye-opener. He witnessed firsthand the competitive and fast-paced nature of the semiconductor industry, where companies could quickly fall behind if they did not innovate or adapt. In his autobiography, he later wrote, “The semiconductor industry is fast-paced and unforgiving. Once you fall behind, catching up becomes incredibly difficult.”
In 1958, Chang moved to Texas Instruments, a company that was transitioning towards consumer products like calculators and digital watches. It was here that Chang’s expertise in semiconductors grew, and in 1962, he became a U.S. citizen.
Founding TSMC
Despite his success in the United States, Chang recognized that his career might be limited unless he made a bold move. In 1984, he joined General Instruments, another semiconductor company. However, the real turning point came in 1987 when he made the decision to leave the U.S. and return to Taiwan to found his own company—TSMC.
At that time, the semiconductor industry operated under a traditional model where companies designed chips and also manufactured them in-house. Chang, however, introduced an entirely new model. He envisioned a company that would specialize in manufacturing chips designed by other companies, without competing with them by producing its own products. This innovative approach, where TSMC would serve as a foundry for other companies’ designs, revolutionized the semiconductor industry.
Chang’s strategy allowed companies to leverage TSMC’s state-of-the-art manufacturing facilities without the need to invest in their own expensive chip manufacturing plants. This not only cut down on costs but also enabled smaller tech companies to access cutting-edge technology without significant capital expenditure.
Transforming the Electronics Industry
Chang’s innovation had a profound impact on the electronics industry, and TSMC quickly became a cornerstone of the global economy. As demand for semiconductors grew, particularly with the rise of personal computers, mobile phones, and other electronic devices, TSMC found itself at the center of a rapidly expanding market.
In the 1990s, as tensions between the U.S. and China began to escalate, TSMC found itself playing an increasingly vital role in global supply chains. Despite the geopolitical risks associated with its location in Taiwan, TSMC’s high-quality products and strong relationships with major tech companies made it an essential player in the global semiconductor market.
By 2018, at the age of 92, Chang decided to retire from his position as Chairman of TSMC. At the time, his net worth was estimated at $3.2 billion, according to Forbes, and he left behind a legacy of innovation and strategic vision that continues to shape the tech industry.
The Rise of TSMC as a Global Leader
Under Chang’s leadership, TSMC became one of the world’s most important companies. As the demand for semiconductors surged, TSMC’s chips powered everything from smartphones to cutting-edge robotics. The company’s pioneering work in chip design and manufacturing set the stage for the widespread adoption of technologies like artificial intelligence, machine learning, and autonomous vehicles.
TSMC’s most famous client is Apple, which relies on TSMC’s chips for its flagship products, including the iPhone and MacBook. Other major clients include NVIDIA, Qualcomm, and AMD, with TSMC providing the advanced chips needed for these companies’ cutting-edge products. TSMC has been able to maintain its leadership position in the industry by consistently investing in research and development to stay ahead of the technological curve.
The AI Boom and TSMC’s Role
In recent years, TSMC has found itself at the center of the booming artificial intelligence sector. With the rise of AI applications like OpenAI’s ChatGPT, the demand for advanced semiconductors has skyrocketed. TSMC has capitalized on this surge in demand by partnering with companies like NVIDIA, which has become the most valuable company in the world, with a market capitalization of $3.3 trillion as of June.
TSMC’s chips are in high demand for AI training and inference, and the company is working with major players in the AI field, including NVIDIA, AMD, and Qualcomm, to produce the cutting-edge chips needed to power AI systems. TSMC’s role in this industry is vital, with the company’s advanced semiconductor technology being integral to the continued development of AI.
On its website, TSMC states, “We have created a technology pipeline to enable the development of AI devices, circuits, and systems.” The company’s focus on AI research and development positions it as a leader in the next generation of technological innovation.
Geopolitical Tensions and TSMC’s Strategic Importance
Taiwan’s position as a major player in the semiconductor industry has made it a focal point of geopolitical tensions, particularly between the U.S. and China. China has long claimed Taiwan as part of its territory and has not ruled out the use of force to bring the island under its control.
In recent years, China has intensified its pressure on Taiwan through large-scale military exercises, raising concerns about the security of global semiconductor supply chains. In May 2023, U.S. Secretary of Commerce Gina Raimondo warned that a Chinese invasion of Taiwan and the capture of TSMC would be catastrophic for the global economy. According to Raimondo, “The United States currently buys 92% of its advanced semiconductors from TSMC in Taiwan.”
Expansion Beyond Taiwan: TSMC’s Global Strategy
In response to rising geopolitical risks, TSMC has made strategic moves to diversify its manufacturing operations outside of Taiwan. The company has begun building factories in the United States to mitigate risks related to potential tensions between Washington and Beijing. In 2023, TSMC announced plans to invest $65 billion in its facilities in Arizona, with two factories already under construction and a third in the pipeline.
In addition to its U.S. expansion, TSMC has also invested heavily in Japan, opening a new $8.6 billion factory in 2023. This move reflects Japan’s growing competition with the U.S. and Europe to attract major semiconductor companies, with generous subsidies and incentives.
Furthermore, TSMC is planning to establish its first-ever factory in Europe, in Germany, signaling its commitment to building a more diversified and resilient supply chain.
Maurice Chang’s journey from a young man grappling with hardship and uncertainty in war-torn China to the founder of one of the most successful companies in the world is a remarkable story of perseverance, innovation, and strategic foresight. TSMC’s growth under his leadership has been nothing short of extraordinary, and his legacy continues to influence the semiconductor industry today. As the world becomes more reliant on technology and the demand for advanced semiconductors continues to soar, TSMC remains at the heart of the global economy. The company’s ability to adapt to changing geopolitical dynamics and technological advancements positions it as a cornerstone of the digital age, ensuring that Maurice Chang’s vision will shape the future for generations to come.
