Intel set to spend $7 billion on new chip facility in Malaysia

What simply occurred? Malaysian authorities say that Intel is about to construct a brand new $7.1 billion manufacturing facility within the nation. It comes because the world struggles with ongoing semiconductor shortages, and Intel CEO Pat Gelsinger warns of overreliance on Taiwanese manufacturing within the shadow of continuous aggression from China.

The Malaysian Funding Growth Authority states in a media invitation that Intel will make investments 30 billion ringgit on the power within the island state of Penang. The assertion stated extra of Intel’s Malaysia plans can be revealed in a press briefing on Wednesday (December 15), an occasion that coincides with US Secretary of State Antony Blinken’s first go to to the area.

Intel CEO Pat Gelsinger can be visiting Taiwan and Malaysia this week for talks for example the significance of Asian manufacturing for Intel. He will likely be assembly leaders of TSMC, a doubtlessly awkward encounter provided that its founder, Morris Chang, lately stated Gelsinger merely doesn’t have sufficient time to take Intel again to the highest as a result of firm’s retirement guidelines for executives.

Chang was possible responding to Gelsinger publicly warning in opposition to counting on Taiwanese chipmakers in mild of China’s threatening actions within the area. “Taiwan will not be a steady place,” stated Gelsinger. “Beijing despatched 27 warplanes to Taiwan’s air protection identification zone this week. Does that make you are feeling extra snug or much less?”

Gelsinger has additionally known as for the US authorities to spend the $52 billion it has put aside for semiconductor funding solely on home firms, one thing that TSMC stated can be “very detrimental for america.”

Whereas it’ll take a number of years earlier than shoppers see the fruits of Intel’s funding, we are able to take some solace in realizing that crew blue is engaged on including extra capability, particularly as its Foundry Providers (IFS) division manufactures chips for others, with Amazon and Qualcomm set to change into two of the primary high-profile prospects. In the meantime, Intel’s two Arizona crops are anticipated to change into absolutely operational in 2024, and it lately stated it will make investments as much as €80 billion ($94.7 billion) in constructing new chip crops in Europe. Within the close to time period, nevertheless, issues aren’t trying as constructive.

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