GEORGETOWN: Intel Corporation's (Intel) groundbreaking ceremony today marks the construction of its new production facility as part of its US$7 billion (RM30 billion) expansion project at the Free Trade Zone Phase 3 of the Bayan Lepas Industrial Park.
The multi-phased expansion project consists of several buildings and is expected to begin production in early 2024.
In his speech at the groundbreaking ceremony, Chief Minister Chow Kon Yeow said Intel's RM30 million investment over the next 10 years would focus on the expansion of the renowned semiconductor's assembly test manufacturing and the build-out of die preparation capability with the addition of advanced packaging capabilities to Intel's operation in Malaysia.
He said it is expected to create over 4,000 job opportunities.
"This groundbreaking ceremony marks the construction of Intel's new facility at Bayan Lepas FTZ 3 for this mega project and investment.
"This new plant is expected to begin production in early 2024," he said.
Penang, Chow said, was among the key pillars of the country's investment inflow and external trade, adding that the state had recorded two years of outstanding investment performances in a row, which included 2019's all-time-high achievement of RM17 billion, and the second-highest in 2020 with RM14 billion.
"With the addition of Intel's reinvestment decision, the state's investment performance in 2021 will greatly surpass Penang's previous records, driving us to the next level," he added.
Chow said, looking back, Penang was proud and grateful for Intel's decision to have selected the state as their first offshore assembly plant in 1972.
Having started with a US$1.6 million investment and 100 employees, Intel has further deepened its roots in the state throughout the past decades. These significant measures have acknowledged the state's robust industrial ecosystem, well-developed infrastructure, availability of skilled workforce as well as liveability stature that upholds Penang as a natural talent magnet.
He also took the opportunity to express his appreciation to Intel for its exemplary corporate citizenship.
Intel Malaysia has committed over RM5 million for Covid-19 relief in the country, supporting hospitals, schools, frontliners and under-served families. Intel Malaysia has also helped vaccinate over 17,000 people, from its workforce, neighbouring companies, and their respective supplier companies.
In addition, Intel has moved the needle in elevating the state's stance on the environmental, social and governance (ESG) agenda.
"Penang is particularly proud to house Intel's largest solar farm outside of the US, harnessing solar energy to diversify energy supply from natural gas and coal sources, which helps in reducing carbon dioxide emissions.
"Intel's value propositions have also captured the sentiments among the workforce. According to the 2021 Randstad Malaysia Employer Brand Research, Intel is the top three most attractive employers in Malaysia, underpinned by its good reputation, financial health and career progression," he noted.
Chow said, with Penang stepping into the 50th anniversary of its industrialisation journey in 2022, it would be a significant milestone that testifies the state's conducive environment in captivating sustained interests from investors.
"Nevertheless, the state is cognisant that Penang's stellar performance would not have been possible without concerted efforts from all.
"The five decades of manufacturing excellence have laid the groundworks for the state to unlock limitless potential.
"Leveraging on that as a springboard, the state will stay committed to forging ahead and continue to work closely with the federal government, especially the International Trade and Industry (MITI) and the Malaysian Investment Development Authority (MIDA) in our investment promotion strategies.
Together, we can propel Penang to greater heights for the next 50 years and beyond," he added.
With InvestPenang as the facilitator, Chow said the state government would ensure smooth implementation of Intel's expansion in Penang, via unwavering support from the state machinery.
"The state has been working closely with Intel's local team and we will continue to maintain this long-standing relation in years to come," he said.
Being one of the eight pioneer investors that sparked the development of a robust ecosystem of ancillary industries in Penang, Intel has established strong linkages with the domestic economy and held a fundamental role in anchoring Penang's position as an advanced manufacturing hub.
With a presence in Penang that spans nearly half a century, Intel Penang has grown into a high-tech campus. This includes an assembly and test facility, Malaysia's largest product design and development centre and one of the only two Intel shared services hubs that support HR, Finance, Procurement, IT and Supply Chain operations globally.
Intel has invested more than RM25 billion in Malaysia and currently employs about 13,000 employees.