Asian tech firms are stockpiling Intel’s older-generation semiconductors amid U.S.-China trade uncertainties, with regional governments subsidizing legacy chip procurement to stabilize supply chains.
NEC and Fujitsu are retrofitting PC designs for Intel’s 14nm CPUs as South Korea commits $420M to legacy chip reserves, signaling a strategic shift toward tech supply chain resilience over cutting-edge innovation.
Trade War Triggers Semiconductor Stockpiling
Intel reported a 37% year-over-year revenue increase for 14nm-22nm chips in Asia-Pacific during Q1 2025, according to its earnings report. This surge coincides with Japan’s METI allocating ¥58B ($360M) on 11 July 2025 to help SMEs secure mature-node semiconductors, as reported by Nikkei Asia.
Regional Responses Intensify
South Korea’s inventory-to-sales ratio for legacy chips reached 2.1 in June 2025 – the highest since 2016 per KOSIS data. Meanwhile, ASEAN’s 10 July joint procurement initiative prioritizes 28nm+ chips, with Malaysia expanding Intel’s Penang facility to meet demand, according to The Straits Times.
Manufacturing Shifts Emerge
TSMC announced plans to boost 28nm production capacity in Kaohsiung by 15% through 2025 Q3, marking its first mature-node expansion since 2020. TechInsights analyst Masao Kunimoto noted: ‘This isn’t innovation retreat – it’s risk management calculus as export controls tighten.’
Historical Parallels and Future Implications
The current stockpiling mirrors 2020’s COVID-driven chip shortages, when automakers temporarily reverted to 40nm microcontrollers. However, analysts warn prolonged reliance on legacy nodes could delay 5G infrastructure upgrades across Southeast Asia.
This trend recalls China’s 2010s mobile payment revolution, where Alibaba prioritized practical adoption over technical perfection. Similarly, Asian governments now appear focused on maintaining technological continuity rather than chasing Western-led AI advancements.
