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Intel’s RM30b Penang investment to create over 4,000 jobs, says Azmin

Azmin (left) and Gelsinger at the press conference on Thursday (Dec 16). According to the Intel CEO, the investment will build a rich ecosystem in building up overall technology capabilities of the Malaysian market. (Photo by Mohd Suhaimi Mohamed Yusuf/The Edge)

Azmin (left) and Gelsinger at the press conference on Thursday (Dec 16). According to the Intel CEO, the investment will build a rich ecosystem in building up overall technology capabilities of the Malaysian market. (Photo by Mohd Suhaimi Mohamed Yusuf/The Edge)

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KUALA LUMPUR (Dec 16): US chip giant Intel Corp's US$7 billion (RM30 billion) planned investment in Penang is expected to create over 4,000 jobs as well as over 5,000 construction jobs in the country, according to Senior Minister and International Trade and Industry Minister Datuk Seri Mohamed Azmin Ali.

Speaking at a press conference on Thursday (Dec 16), Azmin highlighted that the latest investment bolsters Malaysia’s role as a prominent site in Intel’s global manufacturing network. 

“This major investment, through subsidiary Intel Electronics (Malaysia) Sdn Bhd, augurs well for Malaysia’s National Investment Aspirations, which look to ensure Malaysia stays at the forefront as a global hub for quality investments while creating high-value jobs. 

“This investment is impactful not just in terms of enabling us to scale up the volume of production but also in terms of moving up the value chain of technology transfer and capacity building. 

“Malaysia will continue to advocate a holistic policy of robust and sustainable growth to ensure developments in fostering green technology, the digital economy and the Fourth Industrial Revolution,” he said.

Meanwhile, Intel chief executive officer (CEO) Patrick P Gelsinger said the investment will build a rich ecosystem in building up overall technology capabilities of the Malaysian market. 

“We will be expanding research and development work in the country. On the expansion of manufacturing, we are targeting a completion date somewhere in 2024.

“This new expansion of our existing facility is expected to support Intel’s advanced packaging technology. We are committed to seeing these advances not only in Malaysia, but to help usher in an era of innovation for Intel and the rest of the world,” Gelsinger highlighted.

Malaysia accounts for 13% of global chip packaging and testing, and some 7% of the world's semiconductor trade passes through the country, with some value added at local factories and chips getting combined with other parts before final shipment.

Malaysia stands as a crucial global hub in the semiconductor global supply chain, accounting for approximately 7% of total global semiconductor trade and 13% of global capacity in terms of back-end assembly tests and packaging.

In 2020, Malaysia's exports of electrical and electronics products were recorded at RM386.29 billion, accounting for 39.3% of the country's total exports.

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