Intel CEO Pat Kirsinger said on Thursday local time that the company will invest more than $7 billion to build a new chip packaging and testing plant in Malaysia. It is reported that the move is to expand production in the country in the face of global semiconductor shortages. Kirsinger noted that the new advanced packaging facility in Malaysia is expected to start production in 2024.
The Malaysian government says the 30 billion ringgit ($7.10 billion) investment is expected to create more than 4,000 Intel jobs and more than 5,000 construction jobs in the country.
Last month, both the United States and Malaysia said they planned to sign an agreement early next year to improve transparency, resilience and safety in semiconductor and manufacturing supply chains.
The global shortage of semiconductor chips is partly due to pandemic-triggered demand for electronics and supply chain disruptions. To that end, automakers cut production, and some companies, including Apple, have also delayed smartphone deliveries.
Malaysia, whose chip assembly industry accounts for 1/10 of global trade of more than $20 billion, warns that shortages will last for at least two years.
Mohamed Azmin Ali, Malaysia's Minister of International Trade and Industry, said in a statement: "This commitment is timely given the bullish global demand driven by chip shortages and the potential challenges posed by the recovery of the global pandemic. ”
![The investment is expected to exceed 44.5 billion yuan! Intel expands production capacity at a semiconductor packaging plant in Malaysia[fig]](data:image/gif;base64,R0lGODlhAQABAIAAAP///wAAACwAAAAAAQABAAACAkQBADs=)