According to various news reports, the American chip maker Intel is planning to build a $7bn chip packaging facility in Malaysia.
The official announcement of constructing the facility will be made on 15th December, during US Secretary of State Antony Blinken’s Southeast Asia visit.
Additionally, Intel’s CEO Pat Gelsinger will be visiting Malaysia and Taiwan to talk about Intel’s future plans with the leaders of Taiwan Semiconductor Manufacturing Co (TMSC).
Malaysian Investment Development Authority has confirmed that Intel Corporation had selected Malaysia to extend its manufacturing capabilities.
The move comes amidst the ongoing global semiconductor shortage affecting several industries including smartphones, gaming consoles, personal computers, and medical devices.
Though the production in this facility will take a few years to begin, in the long run, it will prove to be beneficial. Building more facilities will help curb chip shortages in the future.
Chip packaging plants use advanced technology to integrate distinct kinds of semiconductors into wafers, a crucial part of the semiconductor manufacturing process.
Intel already has a memory chip assembly site in Penang and the new packaging facility will also be in the region.
Meanwhile, the chip giant employs about 12K people in the country.
Intel talking about its plan to enhance the chip manufacturing capabilities and also about the plans to enter the third-party foundry business said that the company will continue to invest and extend its facilities in Malaysia as part of Intel’ recently announced IDM 2.0 strategy and tightening the strong foundation stone laid five decades ago.
Stats: Taiwan is the leading provider of semiconductor chips with over 50% market share and is followed by China, the United States, and Malaysia.
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