CIOInsider India Magazine
Intel Invests Over $7 Billion in a Chip Factory in Malaysia
Intel is investing more than $7 billion (Rs.53,380 crores) to build a new chip-packaging and testing factory in Malaysia. The new advanced packaging facility in Malaysia is expected to begin production in 2024 says, Chief Executive Officer, Pat Gelsinger.
The MYR 30 billion (around Rs. 54,140 core) investment is expected to create over 4,000 Intel jobs and more than 5,000 construction jobs in the country says Malaysian government.
Malaysia’s Minister of International Trade and Industry Mohamed Azmin Ali says, “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.”
A global shortage of semiconductors, caused partly by a pandemic-fuelled claim for electronics and disruptions in supply chains has seen car makers cut production and delays in smartphone deliveries at companies including Apple Inc.
Gelsinger says, “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 and Intel hoped to announce the next locations in the United States and Europe early next year.”
the company was planning two chip factories at a new site in Europe and could potentially expand it further, with the increases raising the total investment over about a decade to the equivalent of as much as 80 billion
The US and Malaysia last month said they plan to sign an agreement early next year to enlighten transparency, resilience and security in the semiconductor and manufacturing sector supply chains.
On September 7 this year Gelsinger said, “the company was planning two chip factories at a new site in Europe and could potentially expand it further, with the increases raising the total investment over about a decade to the equivalent of as much as 80 billion. The facilities would cater to meteoric demand for semiconductors as computers, cars and gadgets become more chip-hungry.”
