Intel Corp. is spending $7.1 billion on new chip packaging facilities in Malaysia, a major investment to ramp up its global footprint and address a crippling global chip shortage it expects to persist until 2023.
The company is earmarking more than 30 billion ringgit toward expanding its capacity in the country, chief executive officer Pat Gelsinger told reporters Thursday. Part of that will bankroll a new packaging plant expected to begin production in 2024, he said.
The project marks a big bet on Malaysia, which is emerging as a global center for testing and assembling semiconductors. The U.S. chipmaker intends to shore up its capabilities in the island state of Penang, creating a sprawling complex that will serve industries from cars to electronics across Asia.
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