Malaysia

Intel kicks off construction of new facility at Penang’s FTZ

Project part of its RM30 billion expansion

Updated 4 years ago · Published on 17 Dec 2021 5:53PM

Intel kicks off construction of new facility at Penang’s FTZ
Penang Chief Minister Chow Kon Yeow officiates Intel Corp’s groundbreaking ceremony for construction of its new production facility at Free Trade Zone Phase 3, Bayan Lepas Industrial Park today. – The Vibes pic, December 17, 2021

by Arulldas Sinnappan

GEORGE TOWN – Chief Minister Chow Kon Yeow officiated Intel Corp’s groundbreaking ceremony today marking the company’s construction of its new production facility at Free Trade Zone Phase 3, Bayan Lepas Industrial Park, Penang.

It is part of Intel’s RM30 billion (US$7 billion) expansion project, which is expected to begin production in early 2024.

Chow congratulated the company and all those involved in turning this great plan into reality today.

“I am pleased to share that Intel will be expanding its operation in Malaysia, investing more than RM30 billion (US$7 billion) over the next 10 years across Intel’s sites in Penang and Kulim.

“This investment project focuses on the expansion of Intel’s assembly test manufacturing and the buildout of die preparation capability with the addition of advanced packaging capabilities to Intel’s operation in Malaysia.

“Being one of the eight pioneer investors that sparked the development of a robust ecosystem of ancillary industries in Penang, Intel has established strong linkages with our domestic economy and held a fundamental role in anchoring Penang’s position as an advanced manufacturing hub.

“With its presence in Penang that spans nearly half a century, Intel Penang has grown into a high-tech campus with 10 buildings.

“This includes one of Intel’s largest assembly and test sites, Malaysia’s largest product design and development centre, and one of the only two Intel shared services hubs that support HR, Finance, Procurement, IT and Supply Chain operations globally,” Chow said.

He said Intel has invested more than RM25 billion in Malaysia and currently employs about 13,000 employees, and the new plant will provide an additional 4,000 jobs for the locals.

Chow added that Penang is among the key pillars of the country’s investment inflow and external trade. The State has recorded two years of outstanding investment performances in a row, which includes 2019’s all-time-high achievement of RM17 billion, and the second highest in 2020 with RM14 billion.

“With the addition of Intel’s reinvestment decision, the state’s investment performance this year will greatly surpass Penang’s previous records, driving us to the next level.

“Looking back, we are proud and grateful for Intel’s decision to have selected Penang as their first offshore assembly plant in 1972. Having started off with a US$1.6 million investment and 100 employees, Intel has further deepened its roots in the state throughout the past decades.

“These significant measures have acknowledged the state’s robust industrial ecosystem, well-developed infrastructure, availability of skilled workforce as well as liveability stature that upholds Penang as a natural talent magnet,” Chow said.

He said in addition, Intel has moved the needle in elevating the state’s stance on the environmental, social and governance agenda.

Penang is particularly proud to house Intel’s largest solar farm outside of the US, harnessing solar energy to diversify energy supply from natural gas and coal sources, which helps in reducing carbon dioxide emissions.

“I would like to take this opportunity to also express my appreciation to Intel for its exemplary corporate citizenship. Intel Malaysia has committed over RM5 million for Covid-19 relief in the country, supporting hospitals, schools, frontliners and under-served families.

“Intel Malaysia has also helped vaccinate over 17,000 people, from its own workforce, neighbouring companies, and their respective supplier companies. Intel’s value propositions have also captured the sentiments among the workforce.

“According to the 2021 Randstad Malaysia Employer Brand Research, Intel is the top three most attractive employers in Malaysia, underpinned by its good reputation, financial health and career progression,” he added. – The Vibes, December 17, 2021

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