TSMC, Intel and other top chipmakers slow Japan, Malaysia expansions

Deceleration driven by weak demand for older chips and Trump tariff concerns

20250327 TSMC Kumamoto

TSMC's first chip plant in Japan, in Kumamoto. The facility's utilization rate is lower than expected due to sluggish demand for mature chips. (Photos by Mizuho Miyazaki)

CHENG TING-FANG and LAULY LI

TAIPEI -- Leading chipmakers and packagers including Taiwan Semiconductor Manufacturing Co. and Intel have slowed the pace of their expansions in Japan and Malaysia due to lackluster demand for older chips and tariff uncertainties, Nikkei Asia has learned.

Chip packagers Advanced Semiconductor Engineering and Siliconware Precision Industries (SPIL) are also among those taking their foot off the gas of their Malaysian expansions, sources briefed on the matter said, as numerous chip suppliers shift their investment strategies to "wait and see" mode.

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