Intel plans $7 bn chip-packaging and testing factory in Malaysia

Intel will invest more than $7 billion to build a new chip-packaging and testing factory in Malaysia.
Intel for CIOs
Intel Chief Executive Pat Gelsinger said the new advanced packaging facility in Malaysia is expected to begin production in 2024.

The 30 billion ringgit ($7.10 billion) investment is expected to create over 4,000 Intel jobs and more than 5,000 construction jobs in the country, the Malaysian government said.

This undertaking is timely given the bullish global demand driven by the chip shortages and the potential challenges arising from the recovery of the pandemic, Malaysian Minister of International Trade and Industry Mohamed Azmin Ali said in a statement.

Malaysia’s chip assembly industry, accounting for more than a tenth of a global trade worth over $20 billion, has warned that shortages will last at least two years.

Intel’s Gelsinger said he expected the chip shortages to last into 2023.

Intel hoped to announce the next locations in the United States and Europe early next year, he added.

Intel opened its first production facility outside the United States at a 5-acre assembly site in Malaysian state of Penang in 1972. By 1975, it employed about 1,000 people and had become a crucial part of the company’s manufacturing chain, its website said.

Last month, the United States and Malaysia said they plan to sign an agreement by early next year towards improving transparency, resilience and security in the semiconductor and manufacturing sector supply chains.