Chip War: The Fight for the World's Most Critical Technology

by Chris Miller

On August 12, 1981, with the ornate wallpaper and thick drapes of the Waldorf Astoria’s grand ballroom in the background, IBM announced the launch of its personal computer, priced at $1,565 for a bulky computer, a big-box monitor, a keyboard, a printer, and two diskette drives.

Except for Apple’s computers, almost every PC used Intel’s chips and Windows software, both of which had been designed to work smoothly together. Intel entered the personal computer era with a virtual monopoly on chip sales for PCs.

Chang’s strategy was simple: do as TSMC had done. In Taiwan, TSMC had hired the best engineers it could find, ideally with experience at American or other advanced chip firms. TSMC bought the best tools it could afford. It focused relentlessly on training its employees in the industry’s best practices. And it took advantage of all the tax and subsidy benefits that Taiwan’s government was willing to provide.