Intel will invest $ 7 billion (approximately Rs. 53,380 crore) to build a new chip packaging and testing plant in Malaysia, CEO Pat Kelsinger said on Thursday.
The new advanced packaging facility in Malaysia is expected to start production in 2024, he said.
The Malaysian government expects MYR 30 billion (approximately Rs. 54,140 crore) to create 4,000 Intel jobs and more than 5,000 construction jobs in the country.
International Trade and Industry Minister Mohammed Azmin Ali said in a statement:
The global shortage of semiconductor chips is caused by an infection caused by disruptions in electronics and supply chains.
Malaysia’s chip assembly industry, which accounts for more than a tenth of global trade worth $ 20 billion, has warned that the deficit could last at least two years.
Intel’s Kelsinger said he expects the chip shortage to last until 2023.
“Overall this year the semiconductor industry will grow more than it has in the last two to three decades. But still, the gaps are huge … and I predict that the deficit limits will last until 2023,” he said.
Intel hopes to announce next locations in the US and Europe early next year, he added.
Intel opened its first manufacturing facility outside the United States in 1972 on a 5 acre assembly site in Penang, Malaysia. In 1975, it employed about 1,000 people and became an integral part of the company’s production chain, according to its website.
Last month, the United States and Malaysia announced plans to sign an agreement early next year to improve transparency, regression and security in semiconductor and manufacturing supply chains.
© Thompson Reuters 2021