The Malaysian government, through the Malaysian Investment Development Authority, has confirmed that Intel will invest 30 billion ringgit to build a new chip factory in Penang.
This investment was unveiled on December 15, 2021, which coincided with the visit of US Secretary of State Anthony Blinken to Malaysia.
Previously, Intel CEO Pat Gelsinger visited Taiwan and Malaysia to show the importance of Intel's existing production facilities in Asia for Intel. He will also meet the TSMC boss.
Interestingly, TSMC founder Morris Chang recently said that Gelsinger actually didn't have enough time to bring Intel back to the top. This statement was issued by Chang to comment on Gelsinger's statement regarding TSMC. That is when Gelsinger issued a warning not to be too dependent on the Taiwanese chipmaker, after China's worrying activities in its neighboring country.
"Taiwan is not a stable place. This week Beijing sent 27 warplanes to Taiwan's air defense area. Does that make you more comfortable or not?" said Gelsinger at the time.
Gelsinger also asked the US government to divert the USD 52 billion of funding they had previously prepared for semiconductor production, specifically for domestic companies. This move according to TSMC will be very negative for the US government.
The construction of the factory in Malaysia will certainly not directly have a major impact on the current shortage of chips. Because the construction of the factory will take several years, as well as to reach the optimal level of production.
Likewise with Intel's two new factories in Arizona, USA, which are estimated to be fully operational in 2024. Intel also previously admitted that it would invest around USD 94.7 billion to build a new factory in Europe.
