Intel invest $7 billion in chip packaging facility in Malaysia

Intel Corp. is spending $7 billion to build a new chip facility in , a major Asian intended to address endemic global semiconductor shortages at a time Washington is advocating domestic production.

The US chipmaker intends to invest 30 billion ringgit on shoring up its advanced chip packaging capabilities in the island state of Penang, Malaysia’s main promotion agency said in a press invitation distributed Monday.

It will elaborate on its plans for the Asian country during a press briefing Wednesday in conjunction with Trade Minister Azmin Ali and Malaysian Investment Development Authority Chief Executive Officer Arham Abdul Rahman, according to the invite.

The event coincides with Secretary of State Antony Blinken’s first visit to Southeast Asia.

CEO Pat Gelsinger took the helm of the largest American chipmaker in February with a mandate to take back leadership of the industry from Asian giants such as Taiwan Semiconductor Manufacturing Co. Investors want Gelsinger to staunch market share losses and customer defections stemming in part from stumbles in upgrading technology.

At the same time, years of global industry under-investment and a surge in Covid-era demand for computing devices have created an unprecedented shortage of the semiconductors needed in everything from cars to smartphones.

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