By 2025, Intel (NASDAQ:INTC) plans to increase the capacity for its top-notch chip packaging services four times over, with the addition of a new facility located in Malaysia, according to Nikkei Asia.
The move comes as America's leading chipmaker aims to regain the global lead in semiconductor manufacturing.
Intel is constructing a new factory in Penang, which will be its first overseas facility for advanced 3D chip packaging, what it calls Foveros technology. Advanced chip packaging technology incorporates different types of chips into one package with the aim of boosting computing power.
In addition, INTC is building a further chip assembly and testing factory in Kulim, which will be part of the company's $7 billion expansion in the Southeast Asian nation.
Nikkei Asia said Intel's corporate vice president for manufacturing supply chain and operations, Robin Martin, told reporters that Malaysia would eventually become its biggest production base for 3D chip packaging.
While it was not confirmed when the Pengang facility would begin mass production, the publication states that INTC said Amazon (NASDAQ:AMZN), Cisco (NASDAQ:CSCO) and the U.S. government have committed to using its advanced packaging technology.