December 2, 2025 /SemiMedia/ — Intel will invest an additional 860 million ringgit (about USD 208 million) in Malaysia to expand its packaging and testing operations, according to an announcement from Prime Minister Anwar Ibrahim. The decision followed his meeting with Intel CEO Lip-Bu Tan and underscores the company’s continued confidence in Malaysia as a core part of its global manufacturing footprint.

Penang advanced packaging capacity expands

Intel’s investment builds on a USD 7 billion commitment announced in 2021 to construct an advanced packaging facility in Penang. The plant, considered one of Intel’s most sophisticated worldwide, is now 99% complete and is expected to strengthen the company’s position in high-value back-end semiconductor manufacturing.

Anwar said the Malaysian government welcomes Intel’s decision, noting that the expansion will reinforce the country’s role in advanced packaging technologies and support its ambition to climb the semiconductor value chain.

In addition to capital investment, Intel will broaden collaboration with Malaysian universities and technical institutions through electives, joint research and skills programs. The company is allocating 2.8 million ringgit over the next two years to support semiconductor talent development, a move aimed at ensuring a long-term pipeline for the region’s manufacturing ecosystem.