GEORGE TOWN, Aug 16 — Penang Chief Minister Chow Kon Yeow said that US tech company, Intel, is continuing its expansion plans in Penang.

He said this may be a sign that the multinational company may not be retrenching its staff in Penang as part of the company’s efforts to reduce costs.

“We did not visit Intel during my recent trip to the US and the state has not been informed of any plans on the retrenchment,” he told reporters after attending the signing ceremony between IJM Perennial Development with Maxis Broadband Sdn Bhd, GlobalComm Telecommunications Sdn Bhd, Hyatt International - Asia Pacific and Galaxy Minion Hotel at The Light City here today.

Chow said the recent announcement by Intel of its plan to slash 15 per cent of its staff as part of a USD10 billion plan to cut costs was concerning the chipmaker’s global operations.

“We do not know how it will impact Penang but they are building their expansion here now so we would expect them to recruit more staff than retrenching,” he added.

Earlier this month, Intel reported a drop in revenue in the second quarter at USD12.8 billion with an income loss of USD1.6 billion.

Meanwhile, commenting on his recent official visit to the United States, Chow said Penang has received affirmation from existing investors that they have plans to continue expanding their operations here.

“A majority of the companies we visited comprised of existing investors who are thinking of expansion plans,” he said.

As for possible new investors, he said this may not materialise for another three years as the companies will need time to plan and come up with finances to invest.

Chow led InvestPenang delegates on a 10-day investment and trade mission to the US between Aug 4 and 14.

He said the mission was focused on renewing ties and strengthening relationships with US investors in Penang.

Chow and the InvestPenang delegates participated in a total of 22 official strategic meetings and site visits.

Among the companies they visited included MKS Instruments, Brooks Instruments, Lattice Semiconductor, AMD, Synopsys, Efinix, Agilent, Coherent, SambaNova,Western Digital, Centific, Monolithic Power Systems (MPS), Dexcom, Cohu, UST, TTM Technologies, Mattel and other potential investors.

https://www.malaymail.com/news/malaysia/2024/08/16/penang-cm-intels-expansion-in-the-state-continues-layoffs-may-not-impact-local-staff/147242