CHPT pauses Taiwan facility upgrades as Q2 2025 semiconductor reports signal demand recalibration, with recent developments confirmed through May 6 sources.
Following yesterday’s announcement by CHPT Semiconductor halting its Pingzhen facility expansion, industry analysts are reassessing Q2 2025 automotive IC demand forecasts.
Recent Developments
CHPT Semiconductor confirmed its Pingzhen expansion pause (May 6, 2025) through an official statement to Digitimes, citing ‘evolving automotive IC demand profiles.’ The suspension affects planned 3nm chip capacity upgrades originally slated for June 2025 commissioning.
Q2 2025 supply chain analyses released last week by TrendForce reveal a 14% quarter-over-quarter decline in automotive microcontroller orders, validating CHPT’s decision. TrendForce analyst Galen Zeng noted on May 2: ‘The electric vehicle market’s inventory correction is progressing faster than anticipated.’
Historical Context
[Historical Context] CHPT’s $2.1B Pingzhen modernization initiative began in Q4 2024 following record EV sales. The project aimed to increase automotive IC output by 40% before the current pause. Market conditions shifted dramatically when Tesla’s March 2025 Model 3 refresh delayed component orders, first reported by Reuters on March 15.
