NVIDIA's Jensen Huang turned down TSMC CEO role twice in 2013
Hsinchu, Friday, 29 November 2024.
A surprising revelation from Morris Chang’s new autobiography shows how different tech history could have been. TSMC’s founder tried to recruit NVIDIA’s Jensen Huang as CEO in 2013, when TSMC was worth ten times more than NVIDIA. Despite TSMC’s market value of $90 billion and an attractive compensation package, Huang declined twice with a simple ‘I already have a job.’ The decision proved prescient - NVIDIA has since become an AI powerhouse. Despite the rejection, Chang and Huang maintained a close friendship, with Huang later acknowledging that NVIDIA’s success was built on TSMC’s foundation. The autobiography, releasing November 29, offers a rare glimpse into high-stakes executive recruitment in the semiconductor industry.
stock implications for tsmc and nvidia
The revelation from Morris Chang’s autobiography has sparked discussions on TSMC’s and NVIDIA’s stock performance. TSMC (TSM:NYSE) remains a dominant force in the semiconductor industry, holding a 61% share of the global foundry market as of Q4 2023. This dominance has been driven by its focus on AI applications and advanced process technologies. NVIDIA, on the other hand, has grown to become a leader in artificial intelligence, leveraging TSMC’s manufacturing prowess for its GPU production[1][5].
impact on manufacturing capacity
TSMC’s manufacturing capacity is a critical factor in the semiconductor supply chain. The company recently adjusted its CoWoS (Chip-on-Wafer-on-Substrate) capacity plans amid geopolitical uncertainties. NVIDIA has secured 60% of TSMC’s increased CoWoS capacity for 2025, highlighting the strategic partnership between the two companies. This move ensures NVIDIA can meet the rising demand for AI applications, while TSMC continues to solidify its position as a key player in the global supply chain[2][3].
geopolitical risks and market leadership
The semiconductor industry faces significant geopolitical risks, particularly with the recent U.S. elections potentially affecting trade policies. TSMC has delayed the opening of its Arizona plant, a decision influenced by these uncertainties. Market experts emphasize the importance of diversifying production bases to mitigate risks. TSMC’s strategy to maintain leadership involves aligning with U.S. interests and expanding its global footprint, ensuring resilience against geopolitical shifts[3][4].
expert views on executive decisions
Market analysts view Morris Chang’s recruitment attempt as a testament to his strategic foresight. Jensen Huang’s decision to remain with NVIDIA allowed him to steer the company to become a leader in AI, significantly increasing its market value. This reflects the importance of leadership in steering company trajectories. Experts argue that such executive decisions can have long-lasting impacts on a company’s competitive edge and market position[1][5].