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Intel’s New $7bn Malaysia Plant to Generate 9,000 Jobs

The advanced packaging facility, which is expected to begin production in 2024, will create over 4,000 Intel jobs and more than 5,000 construction jobs

Intel, one of the few US domestic chipmakers, said in January it would spend $20 billion on a factory in Ohio after breaking ground on two new plants in Arizona last year. File photo: Reuters.


Intel  will invest more than $7 billion to build a new chip-packaging and testing factory in Malaysia, chief executive Pat Gelsinger said on Thursday, expanding production in the country following a global shortage of semiconductors.

The new advanced packaging facility in Malaysia is expected to begin production in 2024, he said.

The 30 billion ringgit ($7.1 billion) investment is expected to create over 4,000 Intel jobs and more than 5,000 construction jobs in the country, the Malaysian government said.

“This undertaking is indeed timely given the bullish global demand driven by the chip shortages and the potential challenges arising from the recovery of the pandemic globally,” Mohamed Azmin Ali, the Malaysian international trade and industry minister, said in a statement.


Global Shortage of Chips

A global shortage of semiconductors, caused partly by a pandemic-fuelled demand for electronics and disruptions in supply chains has seen carmakers cut production and delays in smartphone deliveries at companies including Apple.

Malaysia’s chip assembly industry, accounting for more than a tenth of a global trade worth over $20 billion, has warned that shortages will last at least two years.

Intel’s Gelsinger said he expected the chip shortages to last into 2023.

“Overall the semiconductor industry this year will grow more than it has in the last two to three decades. But still the gaps are large … and I predict that the limitations of the shortages will persist into 2023,” he said.

Intel hoped to announce the next locations in the US and Europe early next year, he added.

Intel opened its first production facility outside the US at a 5-acre assembly site in the Malaysian state of Penang in 1972. By 1975, it employed about 1,000 people and had become a crucial part of the company’s manufacturing chain, its website said.

Last month, the US and Malaysia said they plan to sign an agreement by early next year towards improving transparency, resilience and security in the semiconductor and manufacturing sector supply chains.


  • Reuters with additional editing by Jim Pollard







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Jim Pollard

Jim Pollard is an Australian journalist based in Thailand since 1999. He worked for News Ltd papers in Sydney, Perth, London and Melbourne before travelling through SE Asia in the late 90s. He was a senior editor at The Nation for 17+ years and has a family in Bangkok.


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