[HN Gopher] Morris Chang and the Origins of TSMC
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       Morris Chang and the Origins of TSMC
        
       Author : rbanffy
       Score  : 140 points
       Date   : 2024-12-31 14:58 UTC (8 hours ago)
        
 (HTM) web link (www.construction-physics.com)
 (TXT) w3m dump (www.construction-physics.com)
        
       | wslh wrote:
       | He was around 55 years old when he founded TSMC.
       | 
       | Regarding the translation from Chinese to English, I think it is
       | a case for community funding. What is the budget required for
       | this?
        
         | alephnerd wrote:
         | Morris Chang wasn't some rando - he was a Group VP at Texas
         | Instruments (reports to CEO) and COO of General Instruments (a
         | major CMOS manufacturer from the 70s-90s - found in
         | Spellovision).
         | 
         | This is the equivalent of Sheryl Sandberg being tasked by a
         | government to found a multi-billion government funded
         | competitor of Facebook.
        
           | rmk wrote:
           | Sheryl Sandberg does not have a technical background. A
           | better analogy would be Eric Schmidt or Adam D'Angelo.
        
             | alephnerd wrote:
             | Eric Schmidt sure, but not D'Angelo, as D'Angelo was never
             | a C-Suite who climbed the ladder but was one of the
             | earliest employees at FB when it was being built.
             | 
             | At the C-Suite level - even at a deeply technical company
             | like TSMC - the job is mostly investor relations and
             | arbitrating between various business units internally, so
             | while a technical background is nice to have, the business
             | chops are more critical than technical chops.
             | 
             | Look at Hock Tan at Broadcom for example - he started out
             | as a line level EE in the semiconductor space (Malaysia is
             | THE packaging and testing hub for semiconductors), but he
             | is notorious for being extremely dollar driven (I've heard
             | him unironically say "Show me the money" a couple times).
        
         | osnium123 wrote:
         | Great question about the budget/funding required. Tyler Cowen's
         | Emergent Ventures fund has funded it but I don't know how much
         | time/money is required.
         | 
         | https://marginalrevolution.com/marginalrevolution/2024/12/em...
        
         | NonEUCitizen wrote:
         | You also need permission from the copyright holder.
        
       | klelatti wrote:
       | Kudos to Brian Potter for getting hold of a copy of Chang's
       | biography and translating it (with some machine assistance)
       | himself!
        
       | pm90 wrote:
       | > TSMC has a fascinating origin story: it was founded in 1985 by
       | Morris Chang, who, after working in the US for Texas Instruments
       | for more than 20 years, was enticed to go to Taiwan and help
       | develop their high-tech industries as head of Taiwan's Industrial
       | Technology Research Institute (ITRI).
       | 
       | How much of this was because of Racism? How many people like
       | that, with the right technical, operational knowledge, experience
       | and drive are prevented from transforming their American company
       | because they don't fit the mold of what Americans consider to be
       | "leaders".
        
         | alephnerd wrote:
         | > How much of this was because of Racism
         | 
         | From what I heard from peers from that era, not significantly.
         | 
         | Taiwan's ITRI gave Morris Chang a blank check to implement his
         | vision, which is something no ambitious person would turn down.
         | 
         | Why become yet another rich but nameless CEO (who remembers
         | Bucy at TI) when you can become the next Jack Kilby or William
         | Shockley.
         | 
         | China did the same thing for Liang Ming Song (former head of
         | R&D at TSMC) at SMIC and India for Randhir Thakur (former head
         | of foundry services at Intel and Applied Materials) at Tata
         | Electronics.
         | 
         | --------
         | 
         | Stop being so combative to OP - he asked a fair question about
         | the bamboo ceiling.
         | 
         | Looking at you Chollida1, next_xibalba, and Cumpiler69 (classy
         | name /s)
        
           | ayewo wrote:
           | > ... he asked a fair question about the bamboo ceiling.
           | 
           | Apparently the concept of "bamboo ceiling" (similar to glass
           | ceiling) has its own Wikipedia entry:
           | 
           | TIL https://en.wikipedia.org/wiki/Bamboo_ceiling
        
           | next_xibalba wrote:
           | It reads to me like it is you who are being combative by
           | calling me out by (screen)name. It was quite reasonable to
           | find the GP comment inexplicable given that 1) the article
           | doesn't make any explicit or implicit mention of racism, 2)
           | Chang rose to group VP at TI after having had his PhD
           | sponsored by the same company [1], and 3) as you say, he was
           | given an astounding offer by Taiwan. In other words, the leap
           | to racism and racial discourse is quite a big one.
           | 
           | Whether or not you view my comment as combative, I utterly
           | reject your belief that you have the right to police my
           | content or tone. This isn't Reddit.
           | 
           | [1] https://engineering.stanford.edu/news/stanford-
           | engineering-h...
        
         | chollida1 wrote:
         | Where did you hear that he left because of racism? He worked at
         | the place fro more than 20 years and rose pretty darn high in
         | the company.
         | 
         | What specific claims of racism has he made?
        
           | Cumpiler69 wrote:
           | None. It's the modern victimisation mentality.
        
           | mlinhares wrote:
           | Morris said it himself that the top execs didn't think he was
           | the "right person" for the job and this was the main reason
           | he left, as he knew no amount of work or brilliance was going
           | to make them change their minds as they clearly saw him as
           | lesser.
        
             | magic_man wrote:
             | He wanted to be CEO and they said no. He went a different
             | American company that said they would let him be CEO, but
             | he realized he didn't want to be the CEO there.
             | 
             | https://m.youtube.com/watch?v=wEh3ZgbvBrE
        
           | foobarian wrote:
           | OP didn't make any claims, merely asked the question. I don't
           | think we can ever know how well this exact person would have
           | done with a different racial background.
        
           | NonEUCitizen wrote:
           | "rose pretty darn high" but not high enough.
        
         | next_xibalba wrote:
         | > Racism
         | 
         | Huh? How did you make that leap? As others have pointed out,
         | Chang was a bigwig at TI.
        
           | etse wrote:
           | We don't need to overstate racism, but "bigwig at TI" is a
           | down leveling for Morris. Doesn't seem right to limit
           | greatness if it's about race and not based on track record or
           | other meritocratic signals.
        
           | NonEUCitizen wrote:
           | not bigwig enough for morris.
        
         | newsclues wrote:
         | It's geopolitical not racial.
        
           | etse wrote:
           | How? Morris didn't get the job because he was born in the
           | wrong country?
        
         | dgfitz wrote:
         | Seems curious to me he would make decisions based on racism.
         | There is a lot of xenophobia around those parts.
         | 
         | Perhaps you're incorrect?
        
           | rbanffy wrote:
           | That's more or less the opposite of what was said - that he
           | would be the victim of racism, perhaps not evident as such,
           | but, maybe, misconceptions about his ability to perform due
           | to his cultural background.
        
       | mfrommil wrote:
       | For those interested in the story, this is a fantastic podcast
       | episode on the history of TSMC.
       | 
       | https://www.acquired.fm/episodes/tsmc
        
         | tyleo wrote:
         | Acquired never disappoints. For folks reading this comment,
         | there are many episodes which overlap with HN interests.
        
           | asciimike wrote:
           | Having recently listened to TSMC as well as Costco, LVMH, and
           | Hermes, there's something available to every member of the HN
           | audience in every episode, no matter how "unrelated" you may
           | think it is.
           | 
           | On the other side of the table, as a former sponsor of a
           | season or two: it was the best marketing we (Crusoe) could
           | have done. We had more high quality inbound from our audience
           | than any other channel, by a long shot. They deeply
           | understand their audience and target appropriately. Strongly
           | recommend to anyone trying to reach a decision making
           | audience (customer and investor).
        
           | 1123581321 wrote:
           | It's not for everyone. Relative to the length, the level of
           | detail is fairly glossy and the narratives about the
           | companies aren't complex or surprising. It's frustrating
           | already knowing a fair amount if not in the mood for
           | entertaining banter.
           | 
           | If they had separate behind-the-scenes episodes with B-side
           | detail and research discussion, they'd be the total package.
           | 
           | Not saying it isn't well done! And it's clearly landing with
           | an educated audience. I know many fans.
        
       | battle-racket wrote:
       | > Eventually Chang is approached by a manager who tells him that
       | he could eventually rise to the position of Vice President of
       | R&D, but to do so he would need to get a phD, and that TI will
       | pay for Chang to get one ... Chang applies and is accepted into
       | Stanford's electrical engineering graduate program. He again
       | works hard and graduates in 3 years
       | 
       | 3 years for a EE PhD is extremely impressive.
        
         | wslh wrote:
         | I think the world unique TSMC 3nm technology is even more
         | impressive though.
        
         | creer wrote:
         | > 3 years for a EE PhD is extremely impressive.
         | 
         | Sure, but to this day, it depends on the school. At some
         | universities that's right out, at Stanford that's common (after
         | a Master or two).
         | 
         | That wasn't the case for Chang but I feel that for some foreign
         | students, it's due to them simply not recognizing that they
         | could actually take their time and enjoy life and the out of
         | this world campus and region. Some students feel pressure, of
         | funding, of potential missed opportunity, of legal status, of
         | acting on a bet that's WAY out of their home professional path,
         | etc. Meanwhile some US students with no major funding problem
         | often feel that there is all the time in the world, if only the
         | university would let them.
         | 
         | For that matter, I bet Chang felt pressure to not be away from
         | this career track at Texas Instrument for too long. He was
         | doing this PhD as a requirement for a specific promotion.
        
           | markus_zhang wrote:
           | Many people do enjoy hard work over simple pleasures. It is
           | very prominent in Asians I think.
        
           | hinkley wrote:
           | At my college if you were rich and driven you could get a
           | Masters in around 1/2 or more reasonably 2/3 the normal time.
           | The thing was most people were spending half their time on a
           | research assistantship, which traded a ton of brain cells to
           | a professor's agenda in exchange for a heavy discount on
           | tuition. You spent half your time working on the professor's
           | ideas and half taking classes.
        
         | rvba wrote:
         | That paragraph also sounded a bit like they wanted to get rid
         | of him
        
           | hinkley wrote:
           | Exploitation can look like rejection if you have self worth.
        
       | barkingcat wrote:
       | It's kind of ridiculous that the actual title of the book isn't
       | mentioned.
       | 
       | I believe it is Zhang Zhong Mou Zi Chuan Quan Ji (Shang Xia Ce )
       | (for both parts)
       | 
       | https://www.books.com.tw/products/0011005571?sloc=main
        
         | geonnave wrote:
         | For those interested, "The Complete Autobiography of Morris
         | Chang (Volumes 1 and 2)" is the machine translation of the
         | above.
        
       | creer wrote:
       | > Chang's immense success with TSMC looks obvious only in
       | hindsight; nobody at the time [...] saw it that way.
       | 
       | That's fair but we can also recognize the pattern! We are now
       | familiar with this one. Chang had noticed the need for fabs as a
       | service to all. And he further noticed that it was at the
       | intersection of others' needs: Taiwan looking for local industry,
       | Philips looking for a local boost, established chips and design
       | companies struggling to find the fab space they were ready to pay
       | for, his ITRI mandate. There are no sure thing but we can see the
       | good call and well done to put all the players together - that
       | was plenty as grounds for a new business with good chances.
        
         | hinkley wrote:
         | The other pattern we see is the manufacturing ladder, which has
         | played out in Taiwan, Hong Kong, Japan, South Korea and now is
         | underway in mainland China.
         | 
         | You can make a factory to make low end products. People copy
         | you. Some employees bubble to the top, and can start making
         | moderately decent products or quit to start on their own ideas.
         | Eventually the low end stops being a good investment of money
         | or people and it fizzles out in favor of luxury and specialty
         | goods.
         | 
         | LG used to make the bottom shelf VCRs that you would find at
         | Best Buy. The VCRs were branded Goldstar, the company Lucky
         | Goldstar. When they went up market they rebranded to distance
         | themselves from their bargain product lines. Now they have
         | fridges that cost more than high end computers.
        
           | lmz wrote:
           | The fridges seem to have the reliability of a high end
           | computer too:
           | https://www.nbcwashington.com/news/consumer/fridge-
           | failures-...
        
       | ngneer wrote:
       | There is no shortage of material on the topic, but I would
       | recommend "Chip War" by Chris Miller as a complementary read.
        
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