Taiwan Semiconductor Manufacturing Company founder Morris Chang wrote in his autobiography that Jensen Huang was offered the top position at the firm in 2013, but declined. The story might seem like a curious footnote to tech history—until you consider the stakes.
Huang got the offer, heard Chang's pitch, and declined the offer within 10 minutes, stating simply, "I already have a job." Undeterred, Chang approached Huang a second time weeks later, but Huang remained firm.
This is the kind of decision that looks either brilliant or reckless depending on what happens next. In Huang's case, it has looked increasingly brilliant. TSMC manufactures the world's most advanced chips, including Nvidia's AI-focused GPUs, which have driven the company's market valuation to $3.057 trillion. Nvidia is now the source of 11% of TSMC's revenue in 2023, according to estimates from semiconductor analyst Dan Nystedt. The company paid TSMC $7.73 billion that year for its services.
When asked to confirm the story on the Lex Fridman podcast, Huang explained his thinking. He said "I didn't dismiss it, but I was deeply honoured. And of course, I knew then, as I know now [that] TSMC is one of the most consequential companies in history." But the work ahead at Nvidia mattered more. "I've seen, you know, in my mind's eye, what Nvidia was going to be and the impact that we could have. And it was really important work, and it's my responsibility, you know, my sole responsibility to make this happen."
A partnership forged in desperation
The relationship between these two men runs deeper than a single job offer. Nvidia CEO Jensen Huang once sent a desperate letter to TSMC founder Morris Chang in 1997, seeking a lifeline for his struggling company, a bold move that not only saved Nvidia from bankruptcy but also forged a multi-billion-dollar partnership. In 1997, Nvidia was struggling financially, with just 50 to 60 employees and an increasingly uncertain future. Facing potential bankruptcy, Nvidia CEO wrote a letter to Chang, pleading for the company's support in manufacturing a critical chip that could turn Nvidia's fortunes around.
That letter, written to TSMC's general post office because Nvidia's formal requests had gone nowhere, changed everything. Their collaboration dates back to 1998 when TSMC dispatched production staff to assist Nvidia during a resource crunch, cementing a partnership that continues to thrive.
Why staying put paid off
The real question is what Huang saw that Chang didn't quite grasp in 2013. At the time, Nvidia was a substantial but not dominant player. The AI boom that would reshape the industry was still years away. A move to TSMC would have meant leading one of the world's most important companies. Instead, Huang bet on himself and the technology he believed was coming.
That faith has been vindicated. He described TSMC as "world-class at both" customer service and technology excellence, and spoke of the "intangible called trust. I trust them to put my company on top of them."
Rather than running TSMC, Huang deepened Nvidia's reliance on it. According to Huang, "Morris will be happy to know Nvidia is TSMC's largest customer now." That partnership, rather than a CEO title, has proven far more valuable to both companies. The hype around this decision is real. So are the results.