Dr. Morris Chang

Good. I was like you, you know. Like 40 years ago, I was like you. I don't play anymore. But, you know, so I know the feeling of hitting a ball in the sweet spot, you know. 28 nanometer is in the sweet spot. And so I said, why? He, you know, gave me a lot of technical reasons, 20 nanometer. So I decided I would believe him. And he now had the resources to push it, to do it as fast as he could.

Good. I was like you, you know. Like 40 years ago, I was like you. I don't play anymore. But, you know, so I know the feeling of hitting a ball in the sweet spot, you know. 28 nanometer is in the sweet spot. And so I said, why? He, you know, gave me a lot of technical reasons, 20 nanometer. So I decided I would believe him. And he now had the resources to push it, to do it as fast as he could.

So, you know, now the capital spending. Now, of course, back then we had already built up a pretty good infrastructure, organizational infrastructure. We had a pretty good market forecasting And I had set up the business development department, which was like a marketing department. We always had a pretty strong sales effort. But to me, sales effort is just the tactical side with the customers.

So, you know, now the capital spending. Now, of course, back then we had already built up a pretty good infrastructure, organizational infrastructure. We had a pretty good market forecasting And I had set up the business development department, which was like a marketing department. We always had a pretty strong sales effort. But to me, sales effort is just the tactical side with the customers.

Marketing is the strategic side to the outside world now. Now, from all these inputs, the marketing, the business development department, which, as I said, was our strategic marketing group. And from the technical, from the R&D side, that 28 was going to be a sweet spot.

Marketing is the strategic side to the outside world now. Now, from all these inputs, the marketing, the business development department, which, as I said, was our strategic marketing group. And from the technical, from the R&D side, that 28 was going to be a sweet spot.

I decided that, and I quote Shakespeare in my autobiography, that there's a tide in the affairs of man, which taken at its flood leads on to fortune. I decided that. This was 28 nanometer was going to be our tide. Our next tide anyway. There will be others. Seven nanometer was another, was the next sweet spot, the Andean people told me. And again, you know, reminded myself of,

I decided that, and I quote Shakespeare in my autobiography, that there's a tide in the affairs of man, which taken at its flood leads on to fortune. I decided that. This was 28 nanometer was going to be our tide. Our next tide anyway. There will be others. Seven nanometer was another, was the next sweet spot, the Andean people told me. And again, you know, reminded myself of,

Shakespeare, you know.

Shakespeare, you know.

Taking it at the flood, yeah. So, I mean, that took, however, you know. I mean, setting the R&D at 8% did not invite any opposition from the board. But suddenly, increasing capital spending threefold, I think, did invite a lot of questions from the board. Our practice in the board meetings, because back then, or even now, most of the directors are from overseas. US and England.

Taking it at the flood, yeah. So, I mean, that took, however, you know. I mean, setting the R&D at 8% did not invite any opposition from the board. But suddenly, increasing capital spending threefold, I think, did invite a lot of questions from the board. Our practice in the board meetings, because back then, or even now, most of the directors are from overseas. US and England.

And we would email the agenda to them two weeks before the board meeting. Then the night before the board meeting, I would invite the independent directors to dinner. And that dinner, the conversation at that dinner was not on record. So the independent directors, actually three quarters of our directors were independent, are independent directors.

And we would email the agenda to them two weeks before the board meeting. Then the night before the board meeting, I would invite the independent directors to dinner. And that dinner, the conversation at that dinner was not on record. So the independent directors, actually three quarters of our directors were independent, are independent directors.

Anyway, so in the night before and the evening before the meeting, they had the opportunity to ask me questions if they had any. But on this matter of vastly increased capital spending, they didn't even wait until they got to that point.

Anyway, so in the night before and the evening before the meeting, they had the opportunity to ask me questions if they had any. But on this matter of vastly increased capital spending, they didn't even wait until they got to that point.

Yeah. And so they called the chief general counsel. The general counsel is also the secretary to the board. They called him, at that time he was an American, the general counselor was an American, and said, we want to talk to the chairman. We don't like this idea at all. Anyway, so I talked to them on the phone. about a week or so before the board meeting.

Yeah. And so they called the chief general counsel. The general counsel is also the secretary to the board. They called him, at that time he was an American, the general counselor was an American, and said, we want to talk to the chairman. We don't like this idea at all. Anyway, so I talked to them on the phone. about a week or so before the board meeting.

And, all right, you know, this is something that, of course, I told them what I have now just told you, inputs from market forecast, inputs from our R&D, inputs from our business department, the new business department. And of course, you know, they didn't believe it. You really can't convince anybody on something like this.

And, all right, you know, this is something that, of course, I told them what I have now just told you, inputs from market forecast, inputs from our R&D, inputs from our business department, the new business department. And of course, you know, they didn't believe it. You really can't convince anybody on something like this.