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Apple’s secret new iPhone just made this 86-year-old a billionaire

Chipmaker climbs 25% in lead-up to new iPhone.

The chairman of the world’s largest contract chipmaker has become a billionaire thanks to expected demand for Apple’s new iPhone.

Read Apple said to test 3-D face scanning to unlock next iPhone

Taiwan Semiconductor Manufacturing (TSMC) shares have surged 25% in the past year, lifting founder and Chairman Morris Chang’s personal fortune to $1 billion, according to the Bloomberg Billionaires Index. Chang, 86, owns 0.5% of the business directly and through his family, according to a May 2017 filing to the Taiwan Stock Exchange.

The climbing valuation is being fuelled by optimism for a revenue boost from the upcoming iPhone release, as well as long-term expectations that cars, high-performance computing and the Internet of Things will be a new growth driver for its processors, according to Randy Abrams, a Taipei-based equity analyst at Credit Suisse Group. 

Elizabeth Sun, TSMC’s spokeswoman, declined to comment on Chang’s net worth.

Processor demand

The Taiwanese chip giant has weathered a slowdown in the global smartphone market, increasing revenue 12.4% last year to NT$947.9 billion ($29.4 billion) on demand for its A10 processor, which is used in Apple’s latest iPhone.

TSMC, which is due to report earnings Thursday after the close of trading, has a market cap of almost $180 billion, making it the most valuable company on Taiwan’s stock exchange. Hon Hai Precision Industry, the listed flagship of iPhone assembler Foxconn Technology Group, is the second-most valuable company on the exchange, rising 56% in the past year to $67.6 billion.

The Taiwan Taiex Electronics Index, a measure of the market’s technology stocks, is up 22% in the same period.

Chang founded TSMC in 1987 with backing from Taiwan’s government, which remains the company’s largest shareholder through the National Development Fund’s 6.4% stake.

The graduate of Massachusetts Institute of Technology and Stanford University spent the majority of his career working for Texas Instruments Inc. He established TSMC when he was in his mid-50s, where he became the first to build a semiconductor factory that made chips based on the designs of its customers. He stepped down as chief executive officer in 2005 only to return when TSMC’s business stagnated, serving another stint as CEO between 2009 and 2013.

Read Welcome to Planet Apple

© 2017 Bloomberg

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As that great Statesman and Politician Churchill once said: Never, ever, ever, ever, ever give up!!

Well done Mr Chang – now, about that application to adopt me as your son & heir …..

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