Intel has invested a whopping RM30 billion plant (Pelican Project) in the Bayan Lepas FIZ to boost its presence in Penang.
With this new facility, which is set to begin its production in 2024, it will further anchor Penang’s position as an advanced manufacturing hub.
Penang Chief Minister Chow Kon Yeow was on hand to officiate the ground breaking ceremony recently.
In his address, Chow said that Intel being one of the eight (8) pioneer investors that sparked the development of a robust ecosystem of ancillary industries in Penang.
“Intel has established strong linkages with our domestic economy and held a fundamental role in anchoring Penang’s position as an advanced manufacturing hub. 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.
“I am pleased to share that Intel will be expanding its operation in Malaysia, investing more than US$7 billion (RM30 billion) over the next 10 years. This investment project focuses on the expansion of Intel’s assembly test manufacturing and the buildout of die preparation capability with the addition of
advanced packaging capabilities to Intel’s operation in Malaysia and 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, said Chow.
He added that Penang is among the key pillars of the country’s investment inflow and external trade. The State has recorded two years of outstanding investment performances in a row, which include 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.”I would like to take this opportunity to also express my 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 own workforce, neighboring 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 added.
Chow said that Penang will be stepping into the 50th anniversary of its industrialization journey in 2022, 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 MITI and MIDA in our investment promotion strategies. Together, we can propel Penang to greater heights for the next 50 years and beyond.
“With InvestPenang as the facilitator, the state government will 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 relationship in years to come, he said in his address.
Also present was Dato’ Abdul Halim Hussain, Penang State EXCO for Trade, Industry & Entrepreneurship Development, Dato Seri Lee Kah Choon, Special Investment Advisor to Chief Minister of Penang, Dato’ Loo Lee Lian, Chief Executive Officer of InvestPenang, Dato Ar. Yew Tung Seang, Mayor, Penang Island City Council, Dato’ Arham Abdul Rahman, Chief Executive Officer of MIDA, Sikh Shamsul Ibrahim, Executive Director, Investment Promotion, MIDA, Ms. AK Chong, Vice President of Manufacturing Supply Chain and Operations, Managing Director of Intel Malaysia and other dignataries.