Intel plans to invest an extra $207.9m to expand its assembly and testing operations in Malaysia, said Prime Minister Anwar Ibrahim.
This move is expected to boost Malaysia’s position in the semiconductor supply chain.
The investment was confirmed during a meeting between Ibrahim and Intel CEO Lip-Bu Tan, as detailed in a social media update from the prime minister.
Ibrahim noted that Intel’s decision was influenced by its confidence in Malaysia’s long-term strategic direction for the semiconductor industry.
Intel’s existing activities in Malaysia include an $2.9bn advanced packaging facility in Penang, which the prime minister said is nearly completed.
In 2021, Intel committed $7bn to develop the Penang location.
Malaysia is responsible for nearly 13% of the worldwide market for chip packaging, assembly and testing, which are the key final stages in semiconductor production.
This sector is said to represent 40% of the nation’s export output. The government has been working to strengthen its role in the global supply network, especially as Malaysia’s neighbours including Singapore and Indonesia have been increasing their focus on domestic semiconductor manufacturing.
Intel’s investment plan comes at a time when the US administration has been highlighting the need to have a complete domestic semiconductor supply chain and encouraging US companies to focus on domestic expansion, despite the lower production costs in Asia, reported Bloomberg.
In August, US Secretary of Commerce Howard Lutnick announced that the federal government would acquire an almost 10% stake in Intel.
According to Intel’s August press release, the government invested $8.9bn in common stock, purchasing 433,300,000 shares at $20.47 per share.
Over the past five years, Intel has reportedly spent $108bn on capital and $79bn on research and development (R&D), with the majority directed towards widening US-based manufacturing and process technology.
In recent years, Intel has faced challenges in scaling up production and has been overtaken by Nvidia, whose market capitalisation has risen above $4tn, compared to Intel’s $100bn, reported the BBC.
In August, President Trump demanded Intel CEO Tan’s immediate resignation, citing concerns over alleged connections to China.
The US President called Tan "highly conflicted" due to investments in Chinese companies that the US Government claims have links to the Chinese military.
For the third quarter of 2025 (Q3 2025), Intel reported a net profit of $4.1bn, reversing a $16.6bn loss in the same period the previous year.
Net revenue for the quarter stood at $13.7bn, a 3% increase over the $13.3bn reported in Q3 2024.
