KUALA LUMPUR (Sept 5): Intel Corp said on Thursday it has not announced any change to its plans to expand its operations in Malaysia, following news that the US chip giant is partially pausing its new chip packaging and testing project in Penang.

“We have not announced any changes to our plans,” an Intel spokesperson told The Edge in a brief email reply. “Malaysia will remain an important market as we build on our long and proud history here.”

On Wednesday, StarBiz reported that Intel had partially paused its Penang expansion, which is part of its US$7 billion (RM30.3 billion) investment into Malaysia first announced back in 2021.

The report cited cash flow issues that led Intel to suspend dividend payouts and initiate job cuts that could affect as much as 15% of its over 131,000 employees globally. Citing sources, the article said Intel was rethinking its new investments not just in Malaysia, but also other parts of the world. In Malaysia, the company hires 14,000 employees.

Intel’s expansion of its Penang operations aims to turn it into its first facility outside of the US for advanced 3D chip packaging.

The US$7 billion investment also includes plans to expand Intel’s operations in Kulim, Kedah, bringing its total investments into Malaysia to US$14 billion by 2032. 

The company first opened its Malaysian manufacturing facility in 1972. The country is Intel’s largest site outside of the US.