TSMC and Intel Slow Expansion in Japan and Malaysia Amid Weak Chip Demand
Leading semiconductor manufacturers TSMC and Intel have decelerated their expansion initiatives in Japan and Malaysia due to sluggish demand for mature chips and broader economic uncertainties, including tariff concerns. TSMC’s Kumamoto facility in Japan, which currently produces 28nm and 22nm nodes, is experiencing lower-than-expected utilization rates driven by weak consumption in the consumer electronics, automotive, and industrial sectors. Consequently, TSMC has postponed the start of production for 16nm and 12nm chips at this plant until 2026. Simultaneously, Intel faces delays in constructing its largest advanced chip packaging factory in Malaysia. This setback is attributed to declining computer demand and Intel's internal financial challenges, which have hindered equipment orders and construction progress. These developments highlight the ongoing volatility in the global semiconductor market, where previously robust expansion plans are being recalibrated in response to subdued market conditions and geopolitical risks. The slowdown underscores the sensitivity of chip manufacturing investments to immediate demand fluctuations and long-term economic stability.
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TSMC and Intel Slow Expansion in Japan and Malaysia Amid Weak Chip Demand
Leading semiconductor manufacturers TSMC and Intel have decelerated their expansion initiatives in Japan and Malaysia due to sluggish demand for mature chips and broader economic uncertainties, including tariff concerns. TSMC’s Kumamoto facility in Japan, which currently produces 28nm and 22nm nodes, is experiencing lower-than-expected utilization rates driven by weak consumption in the consumer electronics, automotive, and industrial sectors. Consequently, TSMC has postponed the start of production for 16nm and 12nm chips at this plant until 2026. Simultaneously, Intel faces delays in constructing its largest advanced chip packaging factory in Malaysia. This setback is attributed to declining computer demand and Intel's internal financial challenges, which have hindered equipment orders and construction progress. These developments highlight the ongoing volatility in the global semiconductor market, where previously robust expansion plans are being recalibrated in response to subdued market conditions and geopolitical risks. The slowdown underscores the sensitivity of chip manufacturing investments to immediate demand fluctuations and long-term economic stability.
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