Intel To Build New $7 Billion Chip Plant In Penang, Malaysia!

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Intel just announced that they are going to build a new $7 billion chip packaging and testing facility in Penang, Malaysia!


Intel To Build New $7 Billion Chip Plant In Malaysia!

On 16 December 2021, Intel CEO Pat Gelsinger officially announced a $7 billion (RM30 billion) investment to build a new chip packaging and testing facility in Penang, Malaysia.

The new Intel facility will add advanced chip packaging capabilities, as well as expand their existing assembly test manufacturing and die preparation capability in Malaysia.

This investment continues Intel’s 49-year old presence in Penang, and is expected to create over 4,000 Intel jobs, as well as 5,000 construction jobs for Malaysians.

The new facility will not address the current semiconductor shortage though, as it will only begin production in 2024.

Intel has two new plants in Arizona, United States, that will also become fully-operational in 2024; with further plans to invest up to €80 billion (US$90.5 billion) to build new chip plants in Europe.

Intel To Build New $7 Billion Chip Plant In Malaysia!


Intel’s New $7 Billion Chip Plant In Malaysia : Diversity Is Key!

The new Penang plant appears to be part of Gelsinger’s plans to diversify chip production globally to avoid any production shock from geopolitical troubles (think Taiwan vs China), or natural disasters from earthquakes and climate change.

Gelsinger had earlier warned, “Taiwan is not a stable place. Beijing sent 27 warplanes to Taiwan’s air defence identification zone last week. Does that make you feel more comfortable or less?

That drew the ire of TSMC Chairman and CEO, Morris Chang, who remarked that Gelsinger does not have “enough time” to take Intel back to the top (of the semiconductor industry).

While Intel did have an earlier retirement age limit of 65 (Gelsinger turns 61 in March 2022), that was since been extended to 75.

So Intel under Gelsinger may have a chance to wrest back significant market share from TSMC, before he retires.


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Dr. Adrian Wong has been writing about tech and science since 1997, even publishing a book with Prentice Hall called Breaking Through The BIOS Barrier (ISBN 978-0131455368) while in medical school.

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