InvestPenang, the Penang state government’s investment arm, is set to hold discussions with US semiconductor giant Intel to better understand the company’s current investment status and future plans in the state.
Chief Minister Chow Kon Yeow said the move follows reports suggesting that Intel may be downsizing its operations in Penang, where the firm is building a major chip packaging and testing facility.
“We are keen to learn about their intentions, particularly regarding the facility they have invested in,” Chow told reporters during a press conference on Penang’s approved manufacturing investments for the first quarter of 2025.
Intel’s US$7 billion investment in Malaysia, announced in 2021, includes its first advanced 3D chip packaging facility outside the United States, located in Penang. It also encompasses expansion activities in Kulim, Kedah, with total Malaysian investments set to reach US$14 billion by 2032.
“I was invited to visit the facility a few months back, and it was nearing completion then. We want to understand what direction they are taking next,” Chow added.
Meanwhile, Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz confirmed that he had recently met with Intel representatives to discuss reinvestment and expansion strategies in Malaysia.
“Intel’s presence in Malaysia since 1972 has grown in tandem with the country’s rise as a global semiconductor hub,” Tengku Zafrul said in a statement posted on X. - June 23, 2025
He noted that Intel has thus far invested RM50 billion in Malaysia and created 12,300 local jobs, emphasising that “this meeting reflects Intel’s continued confidence in Malaysia as its key investment destination outside the US.” - June 23, 2025
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