TSMC ignored Nvidia’s calls, then Morris Chang rang
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.Today, Nvidia is the world's most valuable company and TSMC is the world's biggest chipmaker. The two have worked together for nearly 30 years. Huang said Chang's call, when it finally came, was the moment he believed Nvidia might survive.
How Huang found TSMC in the Yellow Pages
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. Nobody called me back," Huang told Fridman.He eventually wrote Chang a lengthy letter. Another long silence followed. Then, one evening, his phone rang. "This is Morris Chang from TSMC," the caller said.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. "Maybe we won't have to die," he said.
Why Nvidia chose TSMC over UMC, and still has no contract
Chang invited Huang to Taiwan, where he visited TSMC and its rival United Microelectronics Corp (UMC). Huang said he was equally impressed by both. His conversations with Chang tipped the scales. Chang spoke about integrity, corporate governance and long-term partnerships."Jensen, if we were to work together, I promise you we would jump through hoops for you," Chang told him.According to Huang, TSMC has kept its word. "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. He also confirmed that Chang offered him the job of TSMC CEO in 2013. Huang declined, saying his work at Nvidia was too important to leave.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. The chipmaker said demand for AI chips still outstrips its manufacturing capacity. It is, however, taking a cautious approach to planning for 2027 amid economic uncertainty.