Intel Plans To Upgrade Capacity With New Facility In Malaysia
Intel has proposed a new plan to upgrade its capacity for the production of chips and related services. It will be achieved by opening up a new factory in Malaysia which will allow Intel to 4x its capacity. The company plans to complete this plan by 2025, which means within the next 1-2 years.
The recent move by Intel is an attempt by the company to regain its position as the global leader in the manufacturing of semiconductors.
The proposed plan includes the construction of a factory in the state of Penang where Foveros technology will be utilized. In simple words, the company is planning to use chip packaging technology which is a mechanism to combine different chips into a single package. This allows the chip to boost the computing power and thus deliver a better performance.
$7 Billion Expansion Project By Intel
Similarly, Intel (INTC) is also going to build another factory located in Kulim. At that plant, the company will be testing different products along with chip assembly. Overall, this factory will be a part of the $7 billion worth of expansion project that's aimed at Malaysia.
Robin Martin, who holds a prestige position at Intel, revealed that the company plans to establish one of the biggest chip production bases in Malaysia. So if we look at this deal in terms of Malaysia, the country will benefit a lot from the technology transfer. In addition, Intel's investment in the country will also create new jobs and even boost the country's GDP.
As for when the new facility in Penang will start mass production, no exact date or details were available. However, media reports suggest that several companies like Cisco, Amazon, and even the US government plan to use the new 'advanced packaging technology'.
So in a sense, we can say that Intel isn't just throwing its money into the unknown. In fact, many tech firms are already in the lineup to buy chips made from new technology.