TSMC ignored Nvidia’s calls, then Morris Chang rang
The two have worked together for nearly 30 years. He also confirmed that Chang offered him the job of TSMC CEO in 2013. The story comes as TSMC, which manufactures Nvidia’s advanced AI chips, posted a 69% jump in third-quarter net profit on Thursday to a record 763.1 billion Taiwan dollars, or about $23.5 billion. It is, however, taking a cautious approach to planning for 2027 amid economic uncertainty.
Nvidia CEO Jensen Huang has revealed that the partnership behind the world’s most powerful AI chips started with a phone book, a string of unanswered calls and a long letter to TSMC founder Morris Chang. In a video with podcaster Lex Fridman released this week, Huang said Nvidia was a struggling startup in the late 1990s, desperate for a manufacturer, and TSMC simply would not call him back.
Huang said Chang’s call, when it finally came, was the moment he believed Nvidia might survive. Nobody called me back,” Huang told Fridman. “This is Morris Chang from TSMC,” the caller said. “Maybe we won’t have to die,” he said. Huang said he was equally impressed by both. “Jensen, if we were to work together, I promise you we would jump through hoops for you,” Chang told him. TSMC has kept its word, according to Huang. “For the whole time, 30 years, they’ve been jumping through hoops for us,” he said. Huang has also told Fridman that trust is what he values most about TSMC. He said the two companies have done tens, possibly hundreds, of billions of dollars in business over three decades without a contract. The chipmaker said demand for AI chips still outstrips its manufacturing capacity.
Nvidia needed a foundry to produce its graphics chips, but capacity was tight. Some foundries even asked companies to license their technology in exchange for access. Huang had heard of TSMC, then a far smaller company, and decided to reach out. He looked up its US office number in the Yellow Pages and dialled. A recording picked up. He left his contact details, explained what Nvidia was building and tried several more times. “Nobody called me. He eventually wrote Chang a lengthy letter. Another long silence followed. Then, one evening, his phone rang. Nearby, Nvidia employees were playing video games, laughing and shouting. “Hey, guys, shut up. It’s Morris Chang,” Huang recalled telling them. His relief was obvious. Chang invited Huang to Taiwan, where he visited TSMC and its rival United Microelectronics Corp (UMC). His conversations with Chang tipped the scales. Chang spoke about integrity, corporate governance and long-term partnerships. Huang declined, saying his work at Nvidia was too important to leave. You use AI every day. Now get your AI Quotient. Take the AIQ test.
Today, Nvidia is the world’s most valuable company and TSMC is the world’s biggest chipmaker.