Intel to invest 6 billion euros in new packaging factory in Malaysia

Intel will invest more than 6 billion euros in an advanced chip production facility in Malaysia. This facility must be used for the packaging process of chips. Intel and the government of Malaysia will share more details on Wednesday.

The production facility in Malaysia will, among other things, apply ‘advanced packaging techniques for semiconductors’, write Reuters and Electronics Weekly. Intel says it wants to invest 30 billion ringgit in the facility, which amounts to about 6.28 billion euros. The new factory is being built in the state of Penang. Intel and the Malaysian trade minister will hold a press conference on Wednesday to provide more details about the ‘fab’. That coincides with a visit by Intel CEO Pat Gelsinger to Asian countries; the CEO will visit Malaysia and Taiwan this week.

Few details are known about Intel’s packaging facility. The company shared details about its roadmap for such packaging technologies in July. The company then spoke about its emib interconnects and Foveros, a technology for stacking chiplets. The company previously used Foveros with its Lakefield CPUs for laptops, and will also use it for Meteor Lake processors. It is possible that those two packaging techniques will be used in the upcoming facility in Malaysia, but this has not yet been concretely confirmed.

Intel will also invest in chip manufacturing capacity in the coming years, as part of its IDM 2.0 strategy. The chipmaker wants to use it to produce chips for other companies, among other things. Intel started construction of two chip factories in Arizona earlier this year and plans to announce another European chip factory and another American factory later this year.