Intel to invest $7 billion in new plant in Malaysia

Intel's Pat Gelsinger said, "The new advanced chip packaging facility in Malaysia is expected to start production in 2024."

The Malaysian government said the 30 billion ringgit ($7.10 billion) investment is expected to create more than 4,000 Intel (NASDAQ:INTC) jobs and more than 5,000 construction jobs in the country.

Mohamed Azmin Ali, Malaysian Minister of International Trade and Industry, said in a statement, "This commitment was really timely given the rising global demand caused by the chip shortage and the potential challenges arising from the global recovery from the pandemic."

The global shortage of semiconductor chips, driven in part by demand for electronics from the pandemic and disruptions in supply chains, has led automakers to cut production and lead to delays in smartphone deliveries.

Malaysia's chip assembly industry, which accounts for more than a tenth of global trade worth more than $20 billion, has warned the famine will last for at least two years.

Pat Gelsinger said, "The semiconductor industry overall will grow more this year than in the last twenty to thirty years. But there are still major gaps, and I predict the limitations of scarcity will continue into 2023." said.

Intel has stated that it hopes to announce the next locations in the United States and Europe early next year.

In 1972, Intel opened its first manufacturing facility outside the United States on a 5-acre assembly site in Penang, Malaysia. Its website states that it employed around 1,000 people in 1975, making it an important part of the company's production chain.

Last month, the United States and Malaysia said they plan to sign an agreement early next year to increase transparency, flexibility, and security in semiconductor and manufacturing industry supply chains.