Intel has reaffirmed its confidence in Malaysia with a total investment nearing RM50 billion to date and plans to expand further in the coming years. According to Malaysia's Minister of Investment, Trade and Industry, Tengku Datuk Seri Zafrul Abdul Aziz, this move aligns with national strategies to position Malaysia as a global semiconductor hub.
What is happening
The announcement was made following Tengku Zafrul’s trade mission to the United States from 18 to 20 June 2025. During the trip, he met with top executives from Intel and Vishay Intertechnology to explore reinvestment opportunities and ongoing collaboration in Malaysia.
Intel’s presence in Malaysia dates back to 1972, with its facility in Penang being the company’s largest manufacturing site outside the United States.
Intel’s latest expansion builds on its US$7 billion (~RM30.3 billion) investment announced in 2021, which includes the construction of a new advanced packaging and assembly-test manufacturing (ATM) facility in Penang and another ATM plant in Kulim, Kedah. Once completed, these projects will significantly increase Intel’s production capacity in the region.
Intel’s current investment supports approximately 12,300 Malaysian jobs, and the total investment is projected to reach US$14 billion (~RM60 billion) by the year 2032. These efforts are supported by Malaysia’s New Industrial Master Plan 2030 and the recently introduced National Semiconductor Strategy, which aim to strengthen Malaysia’s role in the global chip supply chain.
Malaysia’s importance in the global semiconductor landscape is growing, especially amid the global “friendshoring” trend, where companies are diversifying their manufacturing bases to reduce geopolitical risks. Other tech giants like Micron, Infineon, and AMS Osram have also expanded operations in Malaysia, particularly in Penang.
What does it means for Malaysia
Intel’s continued investment sends a strong signal that Malaysia remains a trusted location for advanced tech manufacturing. This not only benefits the local economy through job creation and infrastructure development but also enhances Malaysia’s appeal to other global semiconductor players.
For the local tech ecosystem, it may result in more innovation opportunities and increased demand for skilled talent in engineering, automation, and electronics.
Highlights
Below are the key investment and infrastructure highlights from Intel’s expansion in Malaysia:
- Total investment to date: ~RM50 billion
- Projected total investment by 2032: ~RM60 billion (US$14 billion)
- Workforce supported: Approximately 12,300 Malaysian employees
- Penang site: Intel’s largest manufacturing site outside the United States
Advanced Packaging Facility (Penang):
- Part of the US$7 billion (~RM30.3 billion) expansion
- Features a 710,000 sq ft cleanroom
- Expected to begin operations by end of 2025
Assembly- Test Manufacturing (ATM) Plant (Kulim, Kedah):
- Also part of the US$7 billion investment
- Equipment installation projected to begin in early 2025
Supported by:
- New Industrial Master Plan 2030
- National Semiconductor Strategy
Do you think Intel’s long-term investment will turn Malaysia into a top global semiconductor hub? Could this attract more big tech players to the country? Stay tuned to TechNave.com for more updates.
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