Intel said it will invest 30 billion ringgit ($7.1 billion) to expand its manufacturing operation in Malaysia as chipmakers work to diversify their global supply chains that were hit hard by the COVID-19 pandemic.
The pending expansion had been widely reported earlier this week. The U.S. semiconductor company is no stranger to Malaysia, where it built its first offshore assembly plant in Penang in 1972.
But the Santa Clara, California-based chipmaker said Thursday the new investment will expand the operations of its Malaysian subsidiary across Penang and Kulim, creating more than 4,000 new Intel jobs and more than 5,000 local construction jobs. That’s on top of 13,000 people that Intel already employs in Malaysia, roughly 10% of the company’s global workforce.
“This latest investment bolsters Malaysia’s role as a prominent site in Intel’s global manufacturing network,” Mohamed Azmin Ali, the country’s senior minister of international trade and industry, said in a statement.
He said it will expand Intel’s assembly and test manufacturing, “while also building out die prep capability with the addition of advanced packaging capabilities,” and help fulfill global demand driven by pandemic-fueled chip shortages.
Intel is Oregon’s largest corporate employer, with 21,000 people working at its factories and administrative sites in Washington County.
Packaging is a low-tech operation compared to the advanced manufacturing Intel does in Oregon and elsewhere but it’s an essential step in the chipmaking process. Expanding and improving its packaging operations are a key component of Intel’s strategy to restore its technological leadership.