Penang: InvestPenang, the state government’s investment promotion agency, plans to engage with Intel to gain a clearer understanding of the current status and future direction of the tech giant’s investment in the state. Chief Minister Chow Kon Yeow stated that this engagement aims to clarify circulating reports that Intel plans to downsize its operations in Penang.

According to BERNAMA News Agency, Intel’s US$7 billion investment in Malaysia, first announced in 2021, includes the development of its advanced 3D chip packaging facility in Penang. This facility is notable for being the first of its scale outside the United States. Chief Minister Chow mentioned that he visited the facility a few months ago and observed significant progress, noting that it is nearing completion. He emphasized the importance of understanding Intel’s plans regarding the facility.

The US$7 billion investment also encompasses plans to expand Intel’s operations in Kulim, Kedah, which would bring its total investments in Malaysia to US$14 billion by 2032. Meanwhile, Minister of Investment, Trade and Industry, Tengku Datuk Seri Zafrul Abdul Aziz, shared that he recently held discussions with Intel concerning the company’s plans for reinvestment and expansion in Malaysia.

Intel has so far invested RM50 billion in Malaysia, creating employment opportunities for 12,300 local workers. The Minister highlighted Intel’s growth in Malaysia since 1972, in line with the country’s emergence as a global semiconductor hub. He also noted that the recent meeting underscores Intel’s continued confidence in Malaysia as a key investment destination outside the US.