As chipmakers try to diversify their worldwide supply networks, which were affected hard by the COVID-19 outbreak, Intel announced it will invest 30 billion ringgit ($7.1 billion) to expand its manufacturing business in Malaysia.
The American semiconductor giant has a long history in Malaysia, having established its first offshore assembly factory in Penang in 1972.
However, the chipmaker from Santa Clara, California, announced on Thursday that the additional investment will extend its Malaysian subsidiary’s activities throughout Penang and Kulim, producing more than 4,000 new Intel employment and more than 5,000 new construction positions. This is on top of the 13,000 employees Intel currently has in Malaysia, accounting for nearly 10% of the company’s global workforce.
In a statement, Malaysia’s senior minister of foreign commerce and industry, Mohamed Azmin Ali, stated, “This new investment bolsters Malaysia’s status as a significant location in Intel’s worldwide manufacturing network.”
Intel’s assembly and test manufacturing would be expanded, he added, “while also expanding out die prep capability with the inclusion of sophisticated packaging capabilities,” to meet worldwide demand pushed by pandemic-related chip shortages.