Dr. Morris Chang

The next step they took was to ask us, TSMC, to co-develop the next generation of technology, which is 0.13 micron, 130 nanometer. In 1999. And since I anticipated that, it was no problem at all for us to refuse the... And in fact, even if I didn't anticipate that, we would never, never have accepted that kind of code development. I mean, IBM was still, you know...

The next step they took was to ask us, TSMC, to co-develop the next generation of technology, which is 0.13 micron, 130 nanometer. In 1999. And since I anticipated that, it was no problem at all for us to refuse the... And in fact, even if I didn't anticipate that, we would never, never have accepted that kind of code development. I mean, IBM was still, you know...

they still consider themselves to be the senior partner in any partnership they establish. The senior partner. So we were, the company that co-developed something with them would send its engineers to IBM, you know. And when we do that, we lose our ability to develop our own processes. We'll have to depend on this co-development thing.

they still consider themselves to be the senior partner in any partnership they establish. The senior partner. So we were, the company that co-developed something with them would send its engineers to IBM, you know. And when we do that, we lose our ability to develop our own processes. We'll have to depend on this co-development thing.

And the co-development thing is going to have a lot of difficulties, you know. Heck, you know, our people, you know, will be in a different culture. So we declined without having to think about it at all. We declined the IBM office. And IBM, in fact, was quite angry, you know. I mean, they thought we were still a small Taiwan backward place, you know.

And the co-development thing is going to have a lot of difficulties, you know. Heck, you know, our people, you know, will be in a different culture. So we declined without having to think about it at all. We declined the IBM office. And IBM, in fact, was quite angry, you know. I mean, they thought we were still a small Taiwan backward place, you know.

It's a Taiwan company, and they are going to pick IBM. So they immediately went to UMC. And UMC accepted it. only to regret seriously their acceptance a few years later.

It's a Taiwan company, and they are going to pick IBM. So they immediately went to UMC. And UMC accepted it. only to regret seriously their acceptance a few years later.

Smaller. They were smaller already, yeah. That's what I meant when I said that sitting here at the Foundry, I can see some things like this IBM thing.

Smaller. They were smaller already, yeah. That's what I meant when I said that sitting here at the Foundry, I can see some things like this IBM thing.

I really did not devolve. I certainly did not initiate it. I think I had a role at TI. I had a role in refining it to the point where a semiconductor company can use it effectively. That's my role.

I really did not devolve. I certainly did not initiate it. I think I had a role at TI. I had a role in refining it to the point where a semiconductor company can use it effectively. That's my role.

So how would you explain it to a novice? Well, explaining the learning curve theory is simple. But one would be foolish if one just takes the simple explanation and thinks that that's all it is. The simple explanation of learning curve is that as you make more of one thing, anything, Actually, it started with refrigerators and the cost. If a company makes more cost, then it's cost.

So how would you explain it to a novice? Well, explaining the learning curve theory is simple. But one would be foolish if one just takes the simple explanation and thinks that that's all it is. The simple explanation of learning curve is that as you make more of one thing, anything, Actually, it started with refrigerators and the cost. If a company makes more cost, then it's cost.

per car, unit cost goes down. That's why it's also called experience curve. You gain more experience, you become more efficient. That's a simple explanation. But if one just takes that simple explanation and thinks that's all it is about, then you really haven't Learn anything. All right. Anyway, the learning curve. Well, Bruce Henderson, who is now considered the father of strategies.

per car, unit cost goes down. That's why it's also called experience curve. You gain more experience, you become more efficient. That's a simple explanation. But if one just takes that simple explanation and thinks that's all it is about, then you really haven't Learn anything. All right. Anyway, the learning curve. Well, Bruce Henderson, who is now considered the father of strategies.

Yeah, he was the founder of Boston Consulting Group. And now, you know, I mean, there's a branch in business economics that's called competitive strategy or something. Competitive strategy, I guess. And Michael Porter was at one time considered a big figure in this competitive strategy. I mean, he wrote three or four books, big books, 700 pages each. I have all of them.

Yeah, he was the founder of Boston Consulting Group. And now, you know, I mean, there's a branch in business economics that's called competitive strategy or something. Competitive strategy, I guess. And Michael Porter was at one time considered a big figure in this competitive strategy. I mean, he wrote three or four books, big books, 700 pages each. I have all of them.

Yeah. I had a story about him in my autobiography, too, which, because of time, we probably won't go into. Not Michael Porter. But Bruce Henderson, we will talk about him. He is now considered to be the father of the competitive strategy. He came to Texas Instruments one day in, I think around 1970, or I should say he first called the T.I.

Yeah. I had a story about him in my autobiography, too, which, because of time, we probably won't go into. Not Michael Porter. But Bruce Henderson, we will talk about him. He is now considered to be the father of the competitive strategy. He came to Texas Instruments one day in, I think around 1970, or I should say he first called the T.I.