TSMC, Intel Slow Expansion In Japan, Malaysia

Leading chipmakers and packagers, including Taiwan Semiconductor Manufacturing Co. (TSMC) and Intel, have slowed the pace of their expansions in Japan and Malaysia due to lackluster demand for older chips and tariff uncertainties, Cheng Ting-Fang and Lauly Li reported for Nikkei Asia.

The slowdown is driven by weak demand for older chips and concerns over Trump-era tariffs. I Photo: Kyodo News

Chip packagers Advanced Semiconductor Engineering and Siliconware Precision Industries (SPIL) are also among those scaling back their Malaysian expansions, sources briefed on the matter said, as numerous chip suppliers shift their investment strategies to a "wait and see" approach.

The slowdown is driven by weak demand for older chips and concerns over Trump-era tariffs.

TSMC may also reconsider its $165 billion U.S. expansion push, opting instead to rely on its existing plants, as higher tariffs could be imposed on products manufactured in the U.S. Earlier, TSMC stated that U.S. expansion was “inevitable” but “risky.”

In another development, Nokia is betting on improved chip designs to handle AI’s increasing energy demands.