On December 16, Intel CEO Pat Gelsinger stated that the company will invest more than US$7 billion to build a new chip packaging and testing plant in Malaysia to expand semiconductor production in the country. The new factory will be the company's most advanced and largest manufacturing facility in the world. It will produce 14-nanometer chips, which are smaller and more efficient than previous generations of chips. He pointed out that the global chip shortage will continue until 2023, and emphasized that although semiconductor manufacturers are eager to expand production, demand continues to soar during the coronavirus pandemic.
The new factory is expected to create thousands of jobs in Malaysia and will help to spur economic growth in the region. Intel has already invested heavily in Malaysia, with over US$4 billion in investments over the past decade, which is a sign of the strong relationship that Intel has with Malaysia and reflects the company's commitment to expanding its operations in the region.
There are two reasons why Intel should build a factory in Malaysia. One reason is that Malaysia has a well-educated workforce. In addition, the country has a good infrastructure and is located close to major markets. Second, the Malaysian government is supportive of foreign investment and offers a number of incentives to companies that invest there.
Intel has a long history of investing in Malaysia. The company first opened a sales office there in the early 1990s, and in 1997 it began building a semiconductor plant. This plant was completed in 1999, and at the time it was the most advanced semiconductor factory in the world.
When the global chip shortage shows no signs of abating, IBM and Swiss-based STMicroelectronics recently chose not to wait for chips manufactured by TSMC, but to hand over OEM orders to Samsung Electronics. Samsung's chips supplied to IBM will be used to produce a new generation of servers using advanced manufacturing technology. This is the first time that STMicroelectronics has outsourced the production of microcontroller units required by its major customers. These microcontrollers, which use a 16-nanometer manufacturing process, will be used in Apple's next-generation iPhone.
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