Dr. Morris Chang, the founder of Taiwan Semiconductor Manufacturing Company (TSMC), is a titan of the technology industry. His visionary "pure-play foundry" model revolutionized semiconductor manufacturing, enabling the fabless design industry and powering the global digital age. His leadership style, strategic foresight, and relentless focus on execution offer timeless lessons for entrepreneurs, executives, and leaders in any field.
On Strategy and Vision
Chang's greatest strategic insight was seeing a new way to structure the entire semiconductor industry. He didn't just build a company; he created a new business model that reshaped the global supply chain.
1. "Without TSMC, the rise of the fabless industry would have been much slower. Without the fabless industry, the semiconductor industry would not be as vibrant and innovative."
Source: Speech at the TSMC 30th Anniversary Celebration (2017). Often quoted in retrospectives.
2. "Our strategy is simple: We are everybody's foundry."
Source: A widely cited summary of TSMC's business model, articulated in numerous interviews over the years.
3. Create a New Playing Field: Instead of competing directly with integrated device manufacturers (IDMs) like Intel, Chang created a new market category where TSMC was the partner, not the competitor, of its customers.
Source: Analysis from the book "The Innovator's Dilemma" by Clayton Christensen often references TSMC as a prime example of this strategy. Chang himself described this in an interview with the Computer History Museum.
Link: Computer History Museum Oral History
4. "A lot of people have dreams. I have a vision. A dream is something you can do by yourself. A vision is something that you need a team for."
Source: Commonly attributed quote summarizing his leadership philosophy.
5. "When I founded TSMC, I had a vision of a company that would be built to last. I wanted to create a company that would be a world-class technology leader and a trusted partner to our customers."
Source: Sentiments expressed in his retirement speech and various corporate communications.
6. "We decided on a business model that was unique in the world... It was a gamble. I think it turned out very well."
Source: Interview with CommonWealth Magazine (2014).
Link: CommonWealth Magazine Interview
7. "My vision was that the fabless business model would create many new small companies with innovative ideas."
Source: Computer History Museum Oral History (2007).
Link: Computer History Museum Oral History
8. "Focus. You have to focus on your core competence. Our core competence is manufacturing technology."
Source: A core tenet of his strategy explained in multiple business case studies and interviews.
9. Trust as a Business Model: Chang’s foundational promise was that TSMC would never compete with its customers. This unwavering commitment to trust became TSMC's most powerful strategic advantage.
Source: This is the central theme of TSMC's business model, detailed in the Asia Times article "How Morris Chang built TSMC into a global powerhouse."
Link: Asia Times Article
10. "We sell service and manufacturing. We don't sell products. Our customers sell products."
Source: A clear and concise definition of the foundry model he has used in countless interviews.
11. "The strategy from the very first was to be a pure-play foundry. We are still a pure-play foundry and will be for as long as I can foresee."
Source: Nikkei Asia Interview (2017).
Link: Nikkei Asia Interview
On Leadership and Management Style
Chang's leadership is a blend of exacting standards, long-term perspective, and a deep commitment to his employees and company culture.
12. "The job of a CEO is to think. To think about the company's future, its strategy, its competition."
Source: A leadership principle discussed during interviews about his role and responsibilities.
13. "I am a very demanding boss. I demand perfection."
Source: Self-description from interviews, including one with the Financial Times.
14. Discipline is the Foundation of Creativity: Chang believed that a highly disciplined environment and adherence to process are what enable true, sustainable innovation.
Source: This philosophy is detailed in the book "Made in Taiwan: The Story of the World's No. 1 Foundry" by J.C. Hung and S.L. Tu.
15. "My management style is a mixture of American and Asian... From the American side, it's the emphasis on innovation, on risk-taking. From the Asian side, it's the emphasis on teamwork, on harmony."
Source: Analysis of his leadership style in various profiles, reflecting his career at Texas Instruments and founding TSMC in Taiwan.
16. "A leader should be a role model. You should practice what you preach."
Source: A common leadership maxim he has espoused in speeches to employees.
17. "I always tell my people: 'Don't be afraid of making mistakes. But don't make the same mistake twice.'"
Source: A widely cited principle of his management philosophy for fostering innovation while maintaining high standards.
18. The Three Core Values of TSMC: Integrity, commitment, and innovation. Chang personally championed these values as the bedrock of the company.
Source: TSMC Corporate Website and official company literature.
Link: TSMC Vision and Mission
19. "Integrity is our most important asset. If we lose that, we lose everything."
Source: A direct quote from a TSMC company address, emphasizing the importance of trust with customers.
20. "When you are a leader, you must have the courage to make unpopular decisions."
Source: Reflecting on his return as CEO in 2009 during an interview with Bloomberg.
Link: Bloomberg Article on his return
21. "A company's culture is the founder's shadow."
Source: Quote from a lecture at a Taiwanese university, reflecting on building TSMC's corporate culture.
22. On his decision to return as CEO in 2009 during a downturn: "I saw a ship that was sinking, and I felt I had to go back and save it."
Source: Paraphrased from interviews discussing his motivations for returning as CEO.
23. "The best way to motivate people is to give them a sense of purpose."
Source: A key element of his leadership philosophy discussed in management forums.
24. Constructive Confrontation: Chang fostered a culture where subordinates were expected to challenge their superiors with well-reasoned arguments, believing this led to better decisions.
Source: This management style was detailed in a Harvard Business School case study on TSMC.
25. "A leader's job is not to be loved. It's to get results."
Source: A pragmatic view of leadership shared in interviews about corporate performance.
On Execution and Technology
26. "Execution is everything. You can have the best strategy in the world, but if you can't execute, it's worthless."
Source: A core belief repeated in numerous interviews and speeches, including his oral history with the Computer History Museum.
27. "We are in a business where technology is king. If you fall behind in technology, you fall behind in everything."
Source: Interview with IEEE Spectrum (2018).
Link: IEEE Spectrum Interview
28. "Moore's Law is not dead. It may be slowing down, but it's not dead. And we at TSMC will continue to push the limits."
Source: Remarks made at the TSMC 30th Anniversary Celebration and in subsequent interviews.
29. The Grand Alliance: Chang fostered a collaborative ecosystem between TSMC, fabless design houses, and equipment suppliers to accelerate innovation across the entire industry.
Source: This strategic concept is a major theme in the book "Chip War" by Chris Miller.
30. "Our customers are our partners. Their success is our success."
Source: A foundational principle of TSMC's customer relations, stated on their corporate website and in annual reports.
31. "In our business, you have to be paranoid. The moment you become complacent, you're dead." (Paraphrasing Andy Grove).
Source: He frequently echoed Grove's famous line, applying it to the foundry business in interviews.
32. "Quality is not something you inspect at the end. It's something you build in from the beginning."
Source: A manufacturing principle he imported from his time at Texas Instruments, based on the teachings of W. Edwards Deming.
33. "We invest in R&D not because we want to, but because we have to."
Source: Explaining TSMC's massive R&D budget in shareholder meetings and financial press interviews.
34. "The semiconductor industry is a marathon, not a sprint. You have to have a long-term perspective."
Source: Interview with the Wall Street Journal, discussing TSMC's long-term investment strategy.
35. "Customer trust is our cornerstone."
Source: TSMC Annual Report (2017), Chairman's letter.
36. "Manufacturing is not a low-tech business. It is a very high-tech business. And it requires a lot of discipline."
Source: A point he has consistently made to counter the perception of manufacturing as a secondary industry.
37. The "N-1" Strategy: For years, TSMC aimed to be just one generation behind the leading IDMs. This was a deliberate strategy to offer proven, reliable manufacturing at scale. Later, they surpassed this to become the world leader.
Source: This early strategy is analyzed in academic papers and books on TSMC's rise.
38. "You have to be very disciplined in your capital investment. You can't just throw money at problems."
Source: Remarks made during investor calls, explaining TSMC's approach to capital expenditure.
On Work Ethic and Personal Philosophy
39. "I work hard. I've always worked hard. I don't know any other way."
Source: Common sentiment in biographical profiles, reflecting his intense work ethic.
40. "I am a lifelong learner. I am always reading, always trying to learn new things."
Source: In his retirement speech, he mentioned plans to read extensively and finish his autobiography.
Link: Reuters article on retirement plans
41. On his 25 years at Texas Instruments: "It was my training ground. I learned everything I know about the semiconductor industry there."
Source: Computer History Museum Oral History (2007).
Link: Computer History Museum Oral History
42. "Age is just a number. It's what you do with your time that matters."
Source: Reflecting on founding TSMC at age 56 and retiring at 86.
43. "The biggest risk is not taking any risk."
Source: Explaining his decision to leave Texas Instruments and later found TSMC.
44. "I don't believe in retirement. As long as I can contribute, I will continue to work."
Source: Said in various interviews prior to his eventual retirement announcement.
45. "Be prepared. Luck is when preparation meets opportunity."
Source: A classic maxim he has used to describe his career trajectory.
46. "I never thought of myself as a Taiwanese entrepreneur. I always thought of myself as a global entrepreneur."
Source: Financial Times Interview (2013).
Link: Financial Times Interview
47. "You have to have a passion for what you do. If you don't have passion, you won't succeed."
Source: Advice given to young entrepreneurs at a university speech.
48. On leaving a comfortable senior position to start a new company: "It was a big risk, but I felt I had to do it. I had a vision, and I wanted to see it through."
Source: Reflecting on his journey in his Computer History Museum oral history.
49. "The purpose of a company is to create value for society."
Source: A core belief expressed in discussions about corporate social responsibility.
50. "My life has been a series of lucky breaks. But I was prepared for them."
Source: A humble reflection on his success, often repeated in interviews and biographical accounts.
