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Morris Chang

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Morris Chang Chung-mou (

pinyin: Zhāng Zhōngmóu; born July 10, 1931) is a Taiwanese-American billionaire business executive and electrical engineer who founded Taiwan Semiconductor Manufacturing Company (TSMC) in 1987. He served as the company's CEO from 1987 to 2005 and as chairman until his retirement in 2018. Widely regarded as the "Father of the Semiconductor Foundry Industry" and the "Godfather of Taiwan's Semiconductor Industry," Chang pioneered the pure-play foundry business model that fundamentally transformed global semiconductor manufacturing.

Under Chang's leadership, TSMC grew from a modest government-backed startup into the world's most valuable semiconductor company, with a market capitalization exceeding US$800 billion. The company manufactures chips for the world's leading technology companies, including Apple, Nvidia, AMD, and Qualcomm, and produces more than 90% of the world's most advanced semiconductors.

Early life and education

Chang was born on July 10, 1931, in Ningbo, a port city in Zhejiang province, located just south of Shanghai. His father, Chang Wei-kuan (1906–1992), was a graduate of East China Normal University (then Kwang Hua University) who received a Western-style education and worked as a county finance official before becoming a bank manager. The family was considered middle-class by the standards of the time.

Chang's childhood was marked by constant upheaval as his family moved frequently to escape the tumultuous political situation in China. From Ningbo, they relocated to Nanjing for his father's banking work, then to Canton (now Guangzhou), and eventually to Hong Kong to flee the Japanese invasion during World War II. These formative experiences instilled in Chang a sense of adaptability and resilience that would serve him throughout his career.

As a young man, Chang harbored ambitions of becoming a novelist or journalist. However, his father, recognizing the uncertain prospects of a literary career and the practical benefits of technical education, persuaded him to pursue engineering instead. This paternal guidance proved fateful for the future of the semiconductor industry.

Higher education in America

Because Hong Kong lacked universities dedicated to science and technology at the time, Chang's father arranged for him to study in the United States. His uncle, Chang Ssu-hou, a professor at Northeastern University, assisted him in gaining admission to Harvard University.

In July 1949, just months before the Communist victory in the Chinese Civil War, the 18-year-old Chang enrolled at Harvard College. He was the only Chinese student among 1,100 undergraduates and quickly demonstrated his academic prowess, placing in the top ten percent of his freshman class while majoring in applied physics and engineering sciences.

Seeking better career prospects in engineering, Chang transferred to the Massachusetts Institute of Technology for his sophomore year. To help cover tuition costs, he won a scholarship and worked as a copy typist and research assistant under MIT professor Joseph Kaye. At MIT, he earned his Bachelor of Science degree in 1952, followed by a Master of Science in 1953 and a Master of Engineering in 1955.

Chang later returned to academia when Texas Instruments sponsored his doctoral studies at Stanford University. He earned his PhD in electrical engineering in 1964, completing the program in approximately two years—a remarkably short time that reflected both his intellectual capabilities and the urgency of his employer's needs.

Career

Texas Instruments (1958–1983)

Chang joined Texas Instruments in 1958, beginning a 25-year career that would see him rise through the ranks to become one of the most respected executives in the semiconductor industry. He started as an engineer and steadily advanced, eventually becoming group vice president overseeing the company's worldwide semiconductor business.

During his tenure, Chang played a pivotal role in establishing Texas Instruments as the world's leading producer of integrated circuits. He gained deep expertise in semiconductor manufacturing processes and developed a keen understanding of the industry's economics and competitive dynamics. This experience would prove invaluable when he later conceptualized the foundry model.

One particularly formative project during Chang's TI years involved a four-transistor contract where IBM handled the manufacturing. This early experience with outsourced production planted seeds of ideas that would later blossom into the revolutionary foundry concept.

By the early 1980s, however, Chang's career at Texas Instruments had reached an impasse. Despite his considerable achievements and seniority, he was passed over for the position of president. The setback prompted him to look for opportunities elsewhere.

General Instrument (1984–1985)

In 1984, Chang left Texas Instruments to become president and chief operating officer of General Instrument Corporation. However, he quickly discovered that the company's culture did not align with his expectations or values. General Instrument had evolved into a company primarily focused on acquisitions, mergers, and subsequent divestitures—a stark contrast to the technology-driven environment he had known at TI.

Chang later reflected that during his interview process, he had not fully understood how the company operated. Finding the emphasis on financial engineering rather than technological innovation unsatisfying, he departed after little more than a year to seek new challenges.

Return to Taiwan and ITRI (1985–1994)

Chang's next opportunity came from an unexpected direction. Sun Yun-suan, Premier of the Republic of China (Taiwan), personally recruited him to return to his ancestral homeland and lead the Industrial Technology Research Institute (ITRI), a government-sponsored organization responsible for promoting industrial and technological development.

Taking over as ITRI president in 1985, Chang immediately began implementing changes. He famously broke what was known as the "iron rice bowl"—the assumption that government jobs were guaranteed for life—introducing performance-based accountability to an organization accustomed to bureaucratic stasis.

Chang served as president and later chairman of ITRI from 1985 to 1994. More significantly, his position at ITRI gave him the platform and government connections necessary to pursue an ambitious new venture: creating Taiwan's first semiconductor company.

Founding of TSMC (1987)

In 1987, at the age of 55—when many executives begin contemplating retirement—Chang founded Taiwan Semiconductor Manufacturing Company. The venture represented a radical departure from conventional semiconductor industry practices.

At the time, the major semiconductor companies were "integrated device manufacturers" (IDMs) that designed, manufactured, and marketed their own chips. Chang's insight was that there existed a market for a "pure-play foundry"—a company that would manufacture chips designed by other companies but would not compete with them by designing its own products. This eliminated the conflicts of interest that made other chip manufacturers reluctant to fabricate competitors' designs.

The founding of TSMC involved a partnership between the Taiwanese government and the Dutch electronics giant Philips. The government's National Development Fund provided 48.3% of the initial equity, while Philips contributed 27.6% in exchange for technology transfer and intellectual property licenses. The remainder came from private Taiwanese investors.

Chang served as TSMC's CEO from the company's founding in 1987 until 2005, and continued as chairman until June 5, 2018, when he announced his retirement. He was succeeded by C.C. Wei as CEO and Mark Liu as chairman.

TSMC's growth and impact

Under Chang's stewardship, TSMC grew from a modest operation into the world's dominant manufacturer of advanced semiconductors. The company's pure-play foundry model enabled the emergence of "fabless" semiconductor companies—firms that could design chips without investing billions in manufacturing facilities. Companies like Nvidia, Qualcomm, AMD, and countless others owe their existence to the ecosystem that TSMC created.

By the time of Chang's retirement in 2018, TSMC had become Taiwan's largest company and one of the world's most valuable semiconductor enterprises. The company manufactures chips for virtually every major technology company and produces over 90% of the world's most advanced processors.

Personal life

First marriage

Chang met his first wife, Christine Chen, during his student years, when he was at MIT and she was studying at Boston University. They married in 1952, when both were 22 years old, and had one daughter together, Chang Hsiao-lin.

The marriage ultimately did not survive Chang's demanding career. The couple separated by the end of 1981 but, for the sake of their daughter, delayed their divorce until 1991, shortly before Chang Hsiao-lin graduated from college.

Second marriage

In 2001, Chang married his second wife, Sophie Chang, a Taiwanese philanthropist, author, and painter. Sophie Chang, born in 1944, is a cousin of Terry Gou, the founder of Foxconn Technology Group. Through this marriage, Chang gained two stepdaughters from Sophie's previous marriage.

Sophie Chang serves as chairperson of the TSMC Charity Foundation and has been active in various non-profit initiatives in Taiwan. The couple has maintained a low-key lifestyle despite their considerable wealth.

In recognition of their generosity, MIT named Building E52 the "Morris and Sophie Chang Building" in 2016. The building, located on the banks of the Charles River, is the original home of the MIT Sloan School of Management and headquarters of the MIT Department of Economics.

Interests and hobbies

In his leisure time, Chang enjoys classical music and is an avid bridge player. He has maintained his intellectual curiosity throughout his life and continues to follow developments in the semiconductor industry even in retirement.

Diplomatic role

Chang has served multiple times as the Presidential Envoy of the Republic of China (Taiwan), under the name "Chinese Taipei," to Asia-Pacific Economic Cooperation (APEC) summits. He first represented Taiwan in this capacity for President Chen Shui-bian in 2006.

President Tsai Ing-wen subsequently appointed Chang as Taiwan's APEC envoy six times between 2018 and 2023. In this role, Chang has served as an informal ambassador, using his international stature and extensive relationships with global business and political leaders to represent Taiwan's interests on the world stage.

At the ceremony honoring his diplomatic service, officials noted: "As a leader's envoy at APEC, he let the world know Taiwan is a capable partner worthy of trust and cooperation, and let the world know the Republic of China (Taiwan) is a presence that cannot be ignored."

Controversies

Anti-union stance

Chang has publicly expressed opposition to labor unions, a position that has drawn criticism from some observers. In 2016, he articulated his view that the absence of unions was one of the keys to the success of major technology companies like Google, Facebook, and Microsoft. He reiterated this stance in 2022.

Critics have characterized these remarks as out of step with evolving attitudes toward worker rights, particularly in an era of growing concern about labor conditions in the technology sector.

TSMC founding credit

Some historical accounts have noted that the idea of founding TSMC did not originate solely with Chang. According to these perspectives, Chang was essentially a professional manager hired by the Taiwanese government to lead a semiconductor company that the state founded and funded. While Chang's role in building TSMC into a global powerhouse is undisputed, debates continue about the extent to which credit for the original foundry concept should be shared with government planners and other contributors.

Views on US semiconductor manufacturing

Chang has been outspoken in his skepticism about efforts to increase semiconductor manufacturing in the United States. He has argued that the US would increase onshore chip production "at a very high cost," rendering domestic factories unable to compete with established manufacturers like TSMC.

He has also suggested that TSMC's decision to invest US$12 billion in an Arizona fabrication plant came primarily at the urging of the US government rather than from pure business logic. These comments have sparked debate about industrial policy and the geopolitical dimensions of semiconductor manufacturing.

Awards and honors

Chang has received numerous awards recognizing his contributions to the semiconductor industry and to Taiwan:

  • IEEE Robert N. Noyce Medal (2000) – For exceptional contributions to the microelectronics industry
  • Computer History Museum Fellow Award (2007) – For dramatically accelerating the production of semiconductor-based devices by developing an independent semiconductor manufacturing foundry
  • Robert N. Noyce Award (2008) – From the Semiconductor Industry Association, the highest honor in the American semiconductor industry
  • Order of Propitious Clouds, First Class (2018) – Awarded by President Tsai Ing-wen, one of Taiwan's highest civilian honors, previously given only to former Vice Presidents
  • Order of Dr. Sun Yat-sen (2024) – For contributions to technology development in Taiwan
  • Stanford Engineering Hero (2012) – Recognition from Stanford University School of Engineering
  • Honorary doctorates from numerous universities, including National Chiao Tung University, National Taiwan University, and Yale University

Net worth

As of 2025, Chang's net worth is estimated at approximately US$5.1 billion, making him one of the wealthiest individuals in Taiwan. His fortune is derived primarily from his stake in TSMC, which he accumulated over his three decades of leadership.

In earlier years, his wealth fluctuated with TSMC's stock price. As of June 2024, he ranked 16th among Taiwan's billionaires, having risen eight places as TSMC's valuation soared due to growing demand for advanced semiconductors driven by artificial intelligence applications.

Legacy

Chang's legacy extends far beyond the company he founded. By pioneering the pure-play foundry model, he enabled the rise of fabless semiconductor companies and fundamentally restructured the global technology industry. Companies from Apple to Nvidia depend on the manufacturing ecosystem he created, and the "fabless-foundry" model he pioneered has become the dominant paradigm in semiconductor production.

Perhaps more significantly, Chang demonstrated that Taiwan could compete at the highest levels of global technology manufacturing. TSMC's success has made Taiwan's semiconductor industry a strategic asset of global importance, with implications for international trade, geopolitics, and national security that extend far beyond the boardroom.

References


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