Intel Corp to invest RM30 bln to expand facilities in Malaysia
16 Dec 2021
Intel Corporation, one of the world’s largest chip manufacturers, will invest more than RM30 billion over the next 10 years to expand its Malaysian operations across Penang and Kulim, Kedah, chief executive officer Patrick Gelsinger said.
He said Intel’s additional investment in the country would include the expansion of the existing assembly test manufacturing facility, while also building up die prep capability with the additional of advanced packaging capabilities.
The company also plans to have a new facility in the country to enable it to scale up on the volume of production and move up the value chain of technology transfer and capacity building, he said.
“The construction for the new expansion involving Kulim and Penang is already under way. The new facility, that supports Intel’s advance packaging technology, is expected to gain production in 2024,” he told a press conference to announce the new investment here today.
Present was Senior Minister cum International Trade and Industry Minister Datuk Seri Mohamed Azmin Ali and Malaysia Investment Development Authority chief executive officer Datuk Arham Abdul Rahman.
Mohamed Azmin said Intel’s investment underscores the 50-year long-term strategic collaboration with Malaysia, and its the world-class facilities would certainly put the country at the forefront of the world’s semiconductor sector.
“This expansion is a testament to Intel’s strong confidence in Malaysia, as a preferred investment hub, manifesting, as well the rising trajectory of our economic recovery and the bright prospects for even more robust growth,” he said.
Gelsinger said Intel is committed to continuing to invest and innovate in the country, and the new investment is expected to create over 4,000 new Intel jobs, as well as over 5,000 construction jobs for Malaysians.
“We are not hunters, we are farmers. We come to build a rich ecosystem, community, and partnership with another start-up here to build up the overall technology capabilities of the Malaysian market.”
Commenting on a worldwide shortage of semiconductors, he said the overall situation was quite significant that Intel and the industry were responding to build capacity, drive yield and supply as rapidly as possible so that the overall semiconductor supply this year will grow more than it has in the last two to three decades.
He said the semiconductor industry was growing at about 5.0 per cent per year and was worth about US$500 billion pre-COVID but the pandemic had disrupted the supply chain thereafter.
Demand for semiconductors, which has exploded to 200 per cent year-on-year versus disrupted supply chain has created a large gap of supply that needs be filled, he said.
“I predicted that the limitation and the shortages will persist into 2023 because building new supply and building new facilities will take a long time. It takes time to build this capacity to respond to this fight,” he said.
On another development, Gelsinger said Intel Corp expects to announce its next major facilities in the United States and Europe early next year.
He said the expansion in Malaysia is a key step of the tech giant’s overall strategy to increase its capacity opportunity.