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Largest chip maker to invest $230 million in Kulim, Malaysia
Intel, the world’s largest chip maker, will invest US$230mil in a new plant in Kulim, creating 2,000 jobs.
The investment is one of the largest by a foreign firm in Malaysia in recent years and is a clear expression of Intel's confidence in the country.
Intel currently has five facilities in Malaysia, employing 10,000 people, which is about 10% of its global workforce.
Announcing the new investment, Intel chairman Craig Barrett said Malaysia had become increasingly integral to Intel.
”Utilizing the country’s technically skilled workforce allows Intel to best serve our customers worldwide,” he said.
The new investment, which is for an assembly and test site and a design and development centre, will be spread over a couple of years.
The new plant will start operations in 2007.
Intel also has a board and design center in Kulim, which is responsible for the design and development of the largest number of Intel motherboards worldwide.
Intel has invested US$3billion here since starting operations 33 years ago.
Five Intel sites in the country manufacture the latest products and serve as pilot sites for some of the company’s products.
These facilities support almost a full range of Intel products.
The new facility in Kulim will include the creation of the Platform Compatibility and Ecosystem Validation Lab, which will focus on supporting digital home and digital office platforms and channel platform business.
“This expansion reflects Intel’s long-term commitment in supporting Malaysia’s economic development through technology,” said Intel Malaysia assembly and test managing director K.C. Yoon.
He said the investment in new facilities had strategic value to Intel not only from a business perspective, but also in the people it hired.
“Already, several employees from Malaysia have contributed to our organisation in management roles around the world,” he said.
Barrett said Intel was looking to growing the engineering and development side of the business in Malaysia instead of testing and assembly.
Asia is now the biggest market for Intel and the fastest growing among regions that make a sizeable contribution to the electronic giant.
“We have a big presence in China, India and Malaysia. Asia is our largest and fastest growing market and it is important from a sales and marketing and resource standpoint,” he said.
The company announced earlier this week a planned investment of US$1billion in India, which will feature a US$250million venture capital fund.
Barrett said that for Southeast Asia to become an even more attractive investment destination, governments would have to continue upgrading educational programs and improve on communications and IT infrastructure.