[News] Intel to Inject $208M in Malaysia to Expand Chip Packaging Amid Soaring Demand

Earlier in July, Intel announced plans to consolidate its chip packaging operations in Costa Rica with facilities in Vietnam and Malaysia amid operational challenges. However, facing surging demand for chip packaging, the company is now set to inject an additional RM860 million ($208 million) into Malaysia, following a visit by CEO Lip-Bu Tan to Prime Minister Datuk Seri Anwar Ibrahim on December 1, according to the Prime Minister’s post on X.

As reported by Free Malaysia Today and Reuters, Intel unveiled plans in 2021 to build a $7 billion chip-packaging and testing facility in Malaysia, with production originally scheduled for 2024. Free Malaysia Today adds that in 2023, the company also pledged to invest RM30 billion over the next decade to expand its facilities in Penang and Kulim, Kedah.

However, The Star noted in February that the timeline for new chip packaging plant has been put on indefinite hold amid Team Blue’s struggles. Now, following a visit by Intel CEO Lip-Bu Tan—a Malaysian-born industry veteran—to the country’s prime minister, the investment project appears to be back on track.

The newly announced RM860 million investment, according to Anwar, will bolster Intel’s packaging and testing operations in Malaysia, further expanding the company’s already significant presence in the country. He also noted that Intel conveyed its gratitude for the government’s ongoing support, particularly for the Advanced Packaging Factory in Penang—a landmark project with a RM12 billion capital outlay that is now 99% complete.

Notably, Malaysia is not the only site Intel is gearing up for ramping up advanced packaging capacity. ETNews reports that Intel is understood to have established its EMIB process at Amkor’s Songdo K5 facility in South Korea—its first-ever move to outsource such high-end packaging.

Read more

• [News] Intel Reportedly Taps Amkor’s Songdo Facility for EMIB Packaging in First-Ever Outsourcing Move
• [News] Intel Gains Momentum: 18A Eyes Apple, EMIB Reportedly Tapped for Google-MediaTek TPUs
• [News] Intel’s EMIB Reportedly Gains Traction with AI ASIC, Smartphone Clients, Could Package TSMC Dies

(Photo credit: Prime Minister Datuk Seri Anwar Ibrahim’s X)