InvestPenang in touch with Intel over pausing its new chip project

InvestPenang in touch with Intel over pausing its new chip project

Penang chief minister Chow Kon Yeow says the company will issue a statement at the right time because it is evaluating the current situation.

Local media reported that Intel had partially paused its Penang expansion, which is part of its US$7 billion (RM30.3 billion) investment in Malaysia, first announced in 2021. (Wikipedia pic)
GEORGE TOWN:
InvestPenang, the investment promotion agency for the state, is in communication with Intel in Penang following news that the US chip maker is partially pausing its new chip packaging and testing project in Penang.

Penang chief minister Chow Kon Yeow said the company will issue a statement at the right time because it is evaluating the current situation.

“We cannot speak on their behalf.

“They will issue a statement when they have made a decision.

“We don’t know what the announcement will be, so we’ll have to wait.

“I believe that as an established company, it has procedures and processes to manage such issues,” he told reporters after attending the launching ceremony of Advanced Technology Equipment Cluster here today.

Chow Kon Yeow at the launch of Advanced Technology Equipment Cluster in Penang today. (Facebook pic)

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

The move was made amid cash flow issues that led Intel to suspend dividend payments and initiate job cuts across its operations globally.

Intel reported a revenue of US$12.8 billion in the second quarter of financial year 2024, down 1% from a year ago and a US$1.6 billion net loss.

Stay current - Follow FMT on WhatsApp, Google news and Telegram

Subscribe to our newsletter and get news delivered to your mailbox.