Intel is restructuring the company with recently 15,000 workers being laid off. It is heard that Intel's actions will also have an impact on their operations in Malaysia. Today The Star reported that Intel has temporarily suspended the construction of their packaging and testing plant in Penang and will be reducing the workforce.
The construction of this plant is part of a $30 billion investment that Intel announced in 2021, during the company's CEO Pat Gelsinger's visit to Malaysia. It was originally expected to begin operations at the end of this year. In the same report, more than 2000 Intel Malaysia staff will be laid off in conjunction with a 15% reduction in the local workforce.
The world's semiconductor giant is suffering losses that have led to drastic cost-cutting measures being taken. Among the other steps Intel may take is to sell their chip fabrication business to TSMC and the construction of a $32 billion factory in Germany will be cancelled. Gelsinger is expected to present his plans to Intel's board of directors in the middle of the month.