GEORGE TOWN, Sept 7 — The Penang government’s investment arm, InvestPenang, is in communication with Intel regarding its Penang expansion plans, said Penang chief minister Chow Kon Yeow.
He said they are still looking into the situation and any changes to the chipmakers’ expansion plans will be announced by the company itself.
“We cannot speak on behalf of them and they will issue a statement when they have finalised their decision on this,” he told reporters when asked about reports of the American-based company halting its new chip packaging and testing project in Penang.
He said as an established company, Intel will have their own procedures and process in managing such matters.
On Wednesday, StarBiz reported that Intel is putting its Penang expansion plan on hold, citing cash flow issues that had led the company to suspending its dividend payouts and initiating job cuts that could affect about 15 per cent of its over 131,000 employees globally.
The expansion plan in Penang is part of the multinational company’s US$7 billion (RM30.3 billion) investment into Malaysia that was first announced back in 2021.
However, yesterday, according to The Edge report, Intel Corp said it has not announced any change to its plans to expand its operations in Malaysia.
The company reportedly said that “Malaysia will remain an important market as we build on our long and proud history here.”
Intel has over 14,000 employees in Malaysia and its expansion plan in Penang was to turn it into the first advanced 3D chip packaging facility outside of the US.
The company first opened its Malaysian manufacturing facility in 1972 and Malaysia is Intel’s largest site outside of the US.
