Intel to produce Pentium 4 chip in Malaysia, open new design centre
Intel will also open its new network design center in Malaysia, its first ever in Asia, to boost its micropressor design competency, said its president and chief executive Craig Barret.
Barrett said Malaysia had been selected to assemble, test and package the Pentium 4 processor.
"The activities reflect Intel's continued investment in Intel Malaysia. They demonstrate how we are building on Malaysia'smanufacturing expertise to expand into new areas," he said in a statement.
Intel has earmarked 11.5 billion dollars for capital expenditures this year, allowing it to develop and introduce new products.
Study on staff cut
Bernama news agency quoted Barrett, who is here on a visit, as saying that Intel would conduct a feasibility study to see if it needed to reduce its 8,000-strong Malaysian workforce to cut cost.
While sales had been affected by the global downturn, Malaysia remained a strong base in the region for Intel and there was no plan to shift operations to another country, he added.
Intel has two plants in Malaysia, one in northern Penang state and another in neighbouring Kedah.
Analysts said news that Intel would produce its Pentium 4 chip in Malaysia had lifted stock market sentiment on technology counters.
"One of the fears of the tech sector is that we are no longer competitive but if Intel says it is going to stay here, it helps the economy," said a senior institutional dealer.
