Intel announced a new investment of 860 million Malaysian ringgit (US$208 million) to expand its assembly and testing operations in Malaysia. The capital allocation is part of Intel’s broader strategy to strengthen its manufacturing capacity in Southeast Asia, support its growing foundry business, and reduce supply‑chain risk.
The investment follows a series of earlier commitments, including a US$7 billion advanced chip‑packaging plant announced in 2021 and a RM30 billion pledge made in 2023. The announcement came after a meeting between Malaysian Prime Minister Anwar Ibrahim and Intel CEO Lip‑Bu Tan, underscoring the partnership between the company and the Malaysian government.
Financially, Intel’s Q3 2025 results showed revenue of US$13.7 billion, up 3% year‑over‑year, and a GAAP net income of US$4.1 billion, marking a return to profitability after a loss in the same quarter a year earlier. Trailing‑twelve‑month sales reached US$53.44 billion, while gross margins improved to over 38%. The strong earnings provide a backdrop for the investment, indicating that Intel is executing on its turnaround plan and has the financial flexibility to fund expansion.
The Malaysia investment is a key component of Intel’s foundry strategy, which aims to become the second‑largest foundry globally by 2030. By expanding assembly and testing capabilities, Intel can accelerate the deployment of its 18A process technology, which is already attracting speculation that Apple may use it for entry‑level M‑series chips. The move also diversifies Intel’s supply chain, reducing exposure to geopolitical risks and strengthening its position in the global semiconductor market.
Market reaction to the announcement was positive, with analysts noting that the investment signals confidence in Intel’s foundry trajectory and aligns with the company’s recent earnings turnaround. The announcement also reinforced expectations that Intel’s strategic focus on advanced packaging and customer‑centric foundry services will drive future growth.
Management commentary highlighted the significance of the investment. Prime Minister Anwar Ibrahim praised Intel’s confidence in Malaysia, emphasizing the company’s role in driving innovation and strengthening the local talent ecosystem. CEO Lip‑Bu Tan reiterated Intel’s commitment to a customer‑centric foundry strategy, stressing that the investment will support the company’s goal of delivering high‑quality, cost‑effective solutions to its customers.
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