Intel has announced a major investment in Malaysia to expand its production capacity and address the global semiconductor shortage. The company will invest more than $7 billion to build a new chip-packaging and testing factory in the island state of Penang, which is expected to begin production in 20241. This is Intel’s largest investment in Malaysia since it opened its first facility outside the United States in 1972.
The new advanced packaging facility will employ over 4,000 Intel workers and create more than 5,000 construction jobs in the country, according to the Malaysian government. The facility will use Intel’s latest technologies to package and test chips for various applications, such as data centers, artificial intelligence, 5G, and edge computing.
Intel’s CEO Pat Gelsinger said that the investment reflects Intel’s commitment to Malaysia and its strategic importance in the global semiconductor industry. He also said that Intel hopes to announce more locations for its production expansion in the United States and Europe next year.
The announcement comes at a time when the world is facing a severe shortage of semiconductors, which are essential components for many electronic devices, such as cars, smartphones, laptops, and gaming consoles. The shortage has been caused by a surge in demand during the Covid-19 pandemic, as well as supply chain disruptions due to natural disasters, trade tensions, and geopolitical issues.
Gelsinger said that he expects the chip shortage to last into 2023 and that Intel is working hard to increase its supply and meet the growing demand. He also said that Intel is collaborating with other chipmakers, such as Taiwan Semiconductor Manufacturing Co. (TSMC), to address the industry challenges.
Intel’s investment in Malaysia is seen as a positive sign for the country’s economy and its role as a key player in the regional and global chip assembly industry. Malaysia accounts for more than 10% of the global trade in chip packaging and testing services, which is worth over $20 billion. The Malaysian government has welcomed Intel’s investment and said that it will enhance the country’s competitiveness and innovation capabilities in the semiconductor sector.
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