Intel already has long-standing operations in Malaysia in these areas * Malaysia is already responsible for 13% of the world’s chip tests
Intel is investing more than $ 7 billion (over $ 30 billion of local currency) in Malaysia to expand its advanced production capabilities.
Intel will build a new chip packaging and testing plant in Bayan Lepas, Penang, a province north of the capital, Kawala Lumpur. To strengthen its supportive activities as well as its global service center against the background of the shortage of semiconductors affecting various industries including the automotive industry.
The new plant will expand Intel’s operations in Malaysia to Penang and Kada provinces, Intel CEO Pat Glasinger said at a news conference in Malaysia on Thursday.
“The large investment, made through its subsidiary Intel Electronics (Malaysia) Sdn Bhd, underscores the long-term strategic relationship of Intel’s 50-year legacy of manufacturing excellence in Malaysia,” said Malaysia’s International Trade and Industry Minister Datuk Sri Muhammad Azmin Ali.
“This large investment bodes well for Malaysia’s national investment aspirations to ensure Malaysia stays at the forefront as a global center for quality investment while creating high-value jobs,” Azmin added.
Glasinger predicted that the shortage of chips would continue until 2023 and that the chip industry would grow in the coming year more than it has grown in the last two to three decades, but gaps still exist .:
Azmin said the new investment would help create more than 4,000 Intel jobs, as well as more than 5,000 construction jobs for Malaysian citizens.
“This commitment is indeed coming in time given the global demand driven by the shortage of chips and the potential challenges posed by the recovery from the world corona,” he added. Malaysia is reportedly responsible for 13% of the global chip packaging and testing.
About seven percent of the world’s semiconductor trade passes through the state, with some added value in local factories and chips combined with other parts before final shipment.