Intel announced an additional $208 million investment in Malaysia, as the country, which holds over 13% of the global chip packaging, assembly and testing market share, moves to strengthen its competitiveness.
On December 2, 2025, at 9:42 AM, Bloomberg News reported that Intel Corp. will invest an additional 860 million ringgit, or approximately 208 million dollars, to develop Malaysia into a chip assembly and testing hub, according to Prime Minister Anwar Ibrahim. This is seen as a significant boost to the country's role in the global semiconductor supply chain.
Prime Minister Anwar said in a Facebook post that the US chipmaker made the commitment during a meeting between him and Intel CEO Lip-Boo Tan on Monday, adding that the company's decision reflected its confidence in Malaysia's long-term planning.
Intel already has manufacturing facilities in Malaysia, including a RM12,000 billion advanced packaging plant in Penang, which is nearing 99% completion, Anwar said. In 2564, Intel also announced a US$7,000 billion investment to build a new factory in Penang.
Malaysia currently holds around 13% of the global market share for chip packaging, assembly and testing, the final stage of semiconductor manufacturing, and this sector is a key driver, accounting for 40% of the country's total export value. Malaysia is seeking to enhance its role in the global supply chain amid competition from other countries looking to strengthen their semiconductor capabilities.
Meanwhile, President Donald Trump's administration has emphasized the need for a complete domestic semiconductor supply chain in the United States, pressuring American companies to prioritize expanding domestic manufacturing, even as chip production costs in Asia remain significantly lower.
Reference: bloomberg.com
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