DETRACTORS are seemingly having a gala time trolling the Madani government after news broke out that US chip giant Intel Corp is “partially pausing” its new chip-packaging and testing project in Penang which is a part of a US$7 bil (RM30.3 bil) investment announced three years ago.

“Intel stops the project in Penang; more than 2,000 workers are at risk of losing their jobs,” so read a one-liner Facebook post by Ratu Naga - the political activist and social media influencer whose real name is Syarul Ema Rena Abu Samah.

This is enough to open a floodgate of criticism that ranges from “one-by-one leaving (after the Tesla deal fell through) as they lost confidence in the way the Madani government manages the Malaysian economy” to “PMX lying about billion-dollar investments flowing into the country”.

But truth be told, Intel has clarified yesterday (Sept 5) that it has yet to unveil any change to its plans to expand its operations in Malaysia following news that the tech giant is partially pausing its new chip packaging and testing project in Penang.

“We haven’t announced any changes to our plans,” financial portal The Edge cited an Intel spokesperson as saying in a brief e-mail reply. “Malaysia will remain an important market as we build on our long and proud history here.”

On Wednesday (Sept 4), StarBiz reported that Intel which employs about 14,000 workers will also be reducing its headcount by about 15% in line with the global plan. This would mean more than 2,000 Intel workers in Malaysia are at risk of losing their jobs.

Ironically, just three weeks prior, Penang Chief Minister Chow Kon Yeow had reportedly said that Intel is continuing its expansion plans in Penang.

Another concerned tech industry observer Kuan Hoong (@kuanhoong) is also wary about Intel’s future given “its CEO has recently announced more plans to reduce its global workforce”.

“Intel Penang are you OK?  15% global workforce will be laid off,” he enquired on the X platform.

The response from commenters who are presumably tech-savvy people somehow painted a bleak prospect.

Intel has since 1972 invested about RM32 bil in Malaysia which is the first location outside of the US to host an Intel factory.

Intel is also one of the companies - the first cohort of multinational corporations - that ventured into Penang in the early 1970s, thus setting the stage for the Pearl of the Orient’s emergence as a regional hub for electronics and semiconductors. - Sept 6, 2024

https://focusmalaysia.my/so-how-far-could-intel-penang-stretch-its-drying-up-fortune-in-malaysia/