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TSMC, Intel and peers to slow Japan, Malaysia chip expansions - Nikkei

Daniel Nenni

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Investing.com-- TSMC, Intel and several other major chipmakers have slowed the pace of their expansions in Japan and Malaysia due to soft demand for older chips and concerns over U.S. tariffs, Nikkei Asia reported on Friday.

TSMC, the world’s biggest contract chipmaker, is slowing its expansion in Japan due to lower demand for its older chips, which it planned to produce at an upcoming facility in the country’s eastern-most prefecture, Kumamoto. The company has now determined it will not need equipment for 16 nanometer and 12-nm chip production in the Kumamoto plant until 2026, the Nikkei report said, citing three people with knowledge of the matter.

Intel Corporation is also facing delays for an advanced chip packaging plant in Malaysia, the Nikkei report said, especially as the once dominant chipmaker grapples with sluggish sales and weak demand.

Siliconware Precision Industries Co - a key NVIDIA Corporation supplier- has also paused an expansion in Malaysia, and will instead focus on building advanced chip packaging plants in Taiwan, Nikkei said.

The Nikkei report comes amid growing speculation over just how much more chip demand artificial intelligence will generate, especially in the data center and computing capacity space. A TD Cowen note showed earlier this week that major AI investor Microsoft had canceled several data center leases in the U.S. and Europe, sparking concerns of oversupply.

AI major Nvidia, and all of its major suppliers would be likely impacted by a slowdown in data center demand.

The Nikkei report also cited increased chip output from China as a reason behind slower capacity expansion by other major chipmakers. China’s Semiconductor Manufacturing International Corp is now the world’s third-largest chipmaker by foundry capacity, although it still produces only larger, older chips at scale.

Beyond AI, global demand for consumer electronics has slowed steadily in recent years, pointing to further pressure on chip demand.

Chipmakers with major U.S. exposure are also facing heightened uncertainty from U.S. President Donald Trump, who recently threatened to slap semiconductors with 25% tariffs. Such a move could also further undermine U.S. chip demand, especially given the high levels of time and investment required to build out more production capacity in the U.S.

 
If only someone had predicted that all of the wild Fab expansion dreams were not going to become reality

In other related news, NOAA said it has measured a increase in March temperature over that in February and January of this year .... but only in the northern hemisphere.
They attribute the shocking increase to fossil fuel use in northern hemisphere

Or as a Senior Semi executive told me "we don't need to build fabs at this point, we just need have plans to build fabs"
 
If only someone had predicted that all of the wild Fab expansion dreams were not going to become reality

In other related news, NOAA said it has measured a increase in March temperature over that in February and January of this year .... but only in the northern hemisphere.
They attribute the shocking increase to fossil fuel use in northern hemisphere

Or as a Senior Semi executive told me "we don't need to build fabs at this point, we just need have plans to build fabs"

I heard the same thing about mega datacenters. Build the shell then move equipment in if/when there is demand.
 
I have not been able to confirm this with TSMC or Intel yet. Anyone? Did the second TSMC Japan fab build get started yet?
According to a report from TBS Japan, the starting time has changed from March this year to within this year:
 
Speaking of Japan. The Rapidus pilot line is up and running 2nm now, correct? Have they shown pictures of the first wafer out of their single wafer processing, low cycle time, IBM 2nm process in Japan
 
According to a report from TBS Japan, the starting time has changed from March this year to within this year:

It is interesting, when it was first announced it was an N16 fab, then I heard it will be N16 and N6 which are two VERY different processes (EUV). I would guess it will end up being N6 which is not a big transition to N5/4.


Semiconductor manufacturer TSMC has revised the start date for construction of its second factory in Kikuyo, Kumamoto Prefecture from the initial "by March 2025" to "within 2025."

Regarding the start date for construction of the second factory, a TSMC executive had said it would be "between January and March of this year," but according to TSMC subsidiary JSAM, the start date has been revised to "within this year."

However, there is no change in the company's goal of being operational by the end of 2027, and the second factory is scheduled to manufacture Japan's most advanced 6-nanometer semiconductors.
 
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