The chairman of Intel, the world's largest chipmaker, said today the company will invest RM868 million (US$230 million) in Malaysia as part of a three-year expansion plan.

The project, which will see the creation of a development centre and an additional assembly and test site in Kulim in northern Kedah state, will create 2,000 jobs in the region, chairman Craig Barrett said.

The investment will be spread out over two to three years, with commercial production scheduled for mid-2007, he said.

Intel Malaysia, Intel's largest operational site outside the United States, currently has 10,000 employees in Kulim as well as Penang and Kuala Lumpur.

Intel has spent some US$3 billion in Malaysia over the past 33 years, it said.