Dr. Morris Chang
👤 SpeakerAppearances Over Time
Podcast Appearances
I know, I liked it too. That's why I included the story in my autobiography.
I know, I liked it too. That's why I included the story in my autobiography.
Well, I had a lot of trouble at TI. My peak job at TI was the head of worldwide semiconductors. TI, of course, had many businesses, defense business, materials and controls business. and also their origin, which was geophysical and so on. But TI's semiconductor business was their biggest, and I was the head of that worldwide semiconductor business.
Well, I had a lot of trouble at TI. My peak job at TI was the head of worldwide semiconductors. TI, of course, had many businesses, defense business, materials and controls business. and also their origin, which was geophysical and so on. But TI's semiconductor business was their biggest, and I was the head of that worldwide semiconductor business.
I wanted, at that time, when I was the head of worldwide semiconductors, our R&D budget was 4.8% of revenue, of our revenue. And I thought it was not enough. I just wanted to raise it to 5.5% of the revenue. But my request was denied every time I raised it. Now, coming back to TSMC. I wanted to set a number a percentage of revenue number.
I wanted, at that time, when I was the head of worldwide semiconductors, our R&D budget was 4.8% of revenue, of our revenue. And I thought it was not enough. I just wanted to raise it to 5.5% of the revenue. But my request was denied every time I raised it. Now, coming back to TSMC. I wanted to set a number a percentage of revenue number.
So we don't have to argue every year how much R&D we should spend. So at about that time, about the time 2008, 2009, when I came back, I just, Almost like, at that time we were running, I think, 6% or 7% a year. But it was negotiated every year between the R&D director and the CEO. So I wanted to stop that. I wanted to make him at ease. He doesn't have to argue. He doesn't have to argue.
So we don't have to argue every year how much R&D we should spend. So at about that time, about the time 2008, 2009, when I came back, I just, Almost like, at that time we were running, I think, 6% or 7% a year. But it was negotiated every year between the R&D director and the CEO. So I wanted to stop that. I wanted to make him at ease. He doesn't have to argue. He doesn't have to argue.
to request every year. So I almost just literally picked a number out ahead. We've been running 6% or 7% already. So I said, oh, let's pick 8%. 8% regardless of whether there's a recession or not. And it's just 8% of revenue. And that was the best news, if you ask our R&D director, who was back then, I think, in the second place of R&D.
to request every year. So I almost just literally picked a number out ahead. We've been running 6% or 7% already. So I said, oh, let's pick 8%. 8% regardless of whether there's a recession or not. And it's just 8% of revenue. And that was the best news, if you ask our R&D director, who was back then, I think, in the second place of R&D.
He would tell you, I mean, he has told me many times in the last 10, 15 years that this was really the best thing that we did for R&D. So they were not concerned, the R&D director was not concerned at all about having his planned budget cut back or whatever. His planned resource, people, allocation, cutback, none of that. So he has been working 8% and so it has been like that.
He would tell you, I mean, he has told me many times in the last 10, 15 years that this was really the best thing that we did for R&D. So they were not concerned, the R&D director was not concerned at all about having his planned budget cut back or whatever. His planned resource, people, allocation, cutback, none of that. So he has been working 8% and so it has been like that.
And that is what propelled our R&D effort.
And that is what propelled our R&D effort.
Yeah, I think it was kind of a mutual feeding thing, you know. As I settled the R&D budget at 8% of revenue, I mean, to the satisfaction of the R&D people, they began to have big ideas, you know. They began to be telling me, our 28 is going to be the term they use. And they have used it several times. But the first time I heard them using it is the 28. 28? It's going to be the sweet spot.
Yeah, I think it was kind of a mutual feeding thing, you know. As I settled the R&D budget at 8% of revenue, I mean, to the satisfaction of the R&D people, they began to have big ideas, you know. They began to be telling me, our 28 is going to be the term they use. And they have used it several times. But the first time I heard them using it is the 28. 28? It's going to be the sweet spot.
It's just like tennis racket, you know. You hit the ball with the sweet spot of your racket. Yeah. Do you play tennis?
It's just like tennis racket, you know. You hit the ball with the sweet spot of your racket. Yeah. Do you play tennis?