Intel to invest $7.1B in Malaysia chipmaking expansion

Intel said it will invest 30 billion ringgit ($7.1 billion) to expand its manufacturing operation in Malaysia as chip makers work to diversify their global supply chains that were hit hard by the COVID-19 pandemic.

Kuala Lumpur (Malaysia): Intel said it will invest 30 billion ringgit ($7.1 billion) to expand its manufacturing operation in Malaysia as chip makers work to diversify their global supply chains that were hit hard by the COVID-19 pandemic.

The U.S. semiconductor company is no stranger to Malaysia, where it built its first offshore assembly plant in Penang in 1972.

The Santa Clara, California-based chip maker said on Thursday the new investment will expand the operations of its Malaysian subsidiary across Penang and Kulim, creating more than 4,000 new Intel jobs and more than 5,000 local construction jobs. Along with the 13,000 people that Intel already employs in Malaysia, roughly 10% of the company's global workforce.

"This latest investment bolsters Malaysia's role as a prominent site in Intel's global manufacturing network," Mohamed Azmin Ali, the country's senior minister of international trade and industry, said in a statement.

He said that "It will expand Intel's assembly and test manufacturing, while also build out die prep capability with the addition of advanced packaging capabilities," and help fulfill global demand driven by pandemic-fueled chip shortages.

AP