Intel will invest more than US$7 billion to build a new chip packaging and testing plant in Malaysia

[TechWeb]News on December 16, according to foreign media reports, on Thursday local time, the chief executive officer (CEO) of chip manufacturer Intel (50.67, 0.97, 1.95%), Pat Gelsinger, said, More than US$7 billion will be invested in a new chip packaging and testing plant in Malaysia, which is expected to start production in 2024.

Gelsinger announced the plan at a time when there was a severe shortage of chips worldwide. In the context of global chip shortages and increased competition for cutting-edge chips, chip competitors including TSMC (120.4, 4.11, 3.53%) and Samsung Electronics (208.25, 0.00, 0.00%) are also investing heavily.

The Malaysian government stated that Intel’s investment is expected to create more than 4,000 Intel jobs and more than 5,000 construction jobs in the country.

Intel is one of the few semiconductor companies that both design and manufacture their own chips, while competitors such as Qualcomm (189.28, 7.30, 4.01%) and Apple (179.3, 4.97, 2.85%) rely on foundry manufacturers for chip design .

In recent years, AMD (146.5, 10.90, 8.04%) has eroded Intel’s market share in the CPU market. However, under the leadership of Gelsinger, Intel has been making plans to regain market share.

In March of this year, the company said that it will build a new wafer fab in Europe and plans to announce the location of the factory next year. In addition, the company also plans to invest US$20 billion to build two new chip factories in Arizona.

Last Tuesday, Gelsinger said that the company plans to use part of the funds raised by its self-driving car subsidiary Mobileye to build more chip factories.

The day before, Intel announced that it would list Mobileye in the United States in mid-2022. After Mobileye completes its IPO, Intel is expected to retain its majority stake.

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