“No changes announced” - Intel responds to reports that it’s pausing its Penang plant expansion & laying off 2000 workers

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Global chip giant Intel Corp is reportedly partially pausing its new chip packaging and testing project in Penang that was part of its USD 7 billion or ~RM30.36 billion investment announced in 2021. According to The Star, This was allegedly due to cash flow issues, which led Intel to suspend dividend payments and initiate job cuts across its operations globally. 

The report added that the partial pause will likely affect Intel’s new plant and not its existing operations. Furthermore, the report claimed that Intel will reduce its headcount in Penang by about 15 per cent, which is around 2000 workers.

However, a spokesperson from the company today didn’t confirm or deny the report, when asked by The Edge Malaysia. Instead, the spokesperson only said, “We have not announced any changes to our plans”. Moreover, the spokesperson stressed that “Malaysia will remain an important market” as Intel builds on its long and proud history here”.

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