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TSMC and Intel slow expansion in Japan and Malaysia due to weak chip demand andeconomic uncertainty
TSMC and Intel are pausing their expansion plans in Japan and Malaysia due to low demand for chips and economic uncertainties. TSMC will delay production of advanced chips at its Kumamoto plant until 2026, while Intel's plans for a major factory in Malaysia are also stalled due to weak demand and financial issues.
Key points
- TSMC and Intel are leading chipmakers affected by reduced demand and economic uncertainty.
- Weak demand for older chips in consumer electronics, automotive, and industrial sectors has led to slowed expansion.
- TSMC's Kumamoto plant, focused on 28nm and 22nm chips, will not begin 16nm and 12nm chip production until 2026.
- Intel has delayed building its advanced packaging factory in Malaysia due to faltering computer demand and financial struggles.
Why it matters
- The global chip industry has been experiencing fluctuations influenced by demand and tariffs, with 2025 projected trends indicating a recovery in sectors like automotive electronics.
- Current economic uncertainty mirrors past slowdowns in tech expansions, such as during the 2008 financial crisis, impacting future investments.
The slowdowns by TSMC and Intel reflect broader trends in the chip industry, emphasizing the need for adaptation to fluctuating demands and economic conditions.