Intel Invests $208 Million in Malaysian Operations, Strengthening Global Semiconductor Supply Chain
US chipmaker Intel is set to invest an additional $208 million in its Malaysian operations, further solidifying the country’s position in the global semiconductor supply chain. According to Malaysian Prime Minister Anwar Ibrahim, Intel’s decision reflects the company’s confidence in the country’s long-term plans. The investment will be used to establish Malaysia as Intel’s assembly and testing operations center.
Malaysia is currently the world’s sixth-largest exporter of microchips and commands 13 percent of the global market for chip packaging, assembly, and testing. The country’s electronics hub, Penang, will be the site of Intel’s new advanced chip packaging plant, which is now 99 percent complete. The plant is part of Intel’s previous investment of $7 billion announced in 2021.
The new investment is a significant boost to Malaysia’s semiconductor industry, which shipped 120 billion ringgit ($28 billion) of electrical and electronic products to the United States last year. The US is Malaysia’s third-largest market for semiconductor exports, with around half of the exported products being chip-related.
Prime Minister Anwar Ibrahim met with Intel CEO Lip-Bu Tan on Monday, where the investment was announced. The prime minister expressed his appreciation for Intel’s confidence in Malaysia’s long-term plans and noted that the company had expressed gratitude for the support of the Malaysian government.
The investment is a testament to Malaysia’s growing importance in the global semiconductor supply chain. With the US seeking to diversify its chip manufacturing away from Asia, Malaysia is well-positioned to benefit from the shift. The country’s strategic location, skilled workforce, and favorable business environment make it an attractive destination for foreign investment.
The latest investment by Intel is expected to create new job opportunities and stimulate economic growth in Malaysia. As the global demand for semiconductors continues to rise, Malaysia’s role in the supply chain is likely to expand further. With its strong foundation in the industry and favorable business environment, Malaysia is poised to remain a key player in the global semiconductor market.
