December 2, 2025 – Malaysian Prime Minister Anwar Ibrahim announced that Intel Corporation has pledged an additional investment of 860 million Malaysian ringgit to solidify Malaysia as its global hub for packaging and testing operations.
The commitment came during a meeting between Anwar and Intel CEO Lip-Bu Tan on Monday, as revealed in a Facebook post by the prime minister. He emphasized that Intel’s decision reflects confidence in Malaysia’s long-term industrial strategy and growth potential.
Intel has already established a significant presence in Malaysia, including a 12 billion-ringgit advanced packaging facility in Penang, which is now 99% complete. This project builds on the U.S. chipmaker’s 2021 pledge to invest $7 billion in expanding its manufacturing footprint in the state.
Malaysia currently holds approximately 13% of the global market for semiconductor packaging, assembly, and testing—critical final stages in chip production. The sector accounts for 40% of the nation’s total exports, underscoring its strategic importance. Amid a global race to strengthen semiconductor supply chains, Malaysia is actively enhancing its role in the industry, particularly as major economies seek to reduce reliance on Asian manufacturing hubs.
The U.S. government, meanwhile, has repeatedly urged domestic companies to prioritize expanding production capacity within the United States, citing national security concerns. However, manufacturing costs in Asia remain substantially lower, complicating efforts to relocate operations despite political pressures.
Intel’s latest investment signals a continued vote of confidence in Malaysia’s ecosystem, combining skilled labor, infrastructure, and cost competitiveness. The move aligns with broader industry trends, where multinational firms are diversifying geographic footprints while maintaining critical Asian operations.
