GEORGE TOWN: U.S. chipmaker Intel is continuing its expansion plans in Penang, according to Chief Minister Chow Kon Yeow.
He stated that this demonstrates the recent layoffs are not part of efforts to reduce costs, as reported. “We did not visit Intel during my recent trip to the U.S., and we were not informed of any plans for layoffs,” he added.
The state government is uncertain how this will impact Penang, but Intel is currently expanding its business here. Therefore, it is expected that Intel will be hiring more employees rather than laying them off. Chow made these comments to reporters after a signing ceremony between IJM Perennial Development and Maxis Broadband Sdn Bhd, GlobalComm Telecommunications Sdn Bhd, Hyatt International – Asia Pacific, and Galaxy Minyoun Hotel at The Light City today.
Earlier this month, foreign media reported that Intel announced plans to cut more than 15% of its workforce as part of a restructuring plan.
It was also reported that the California-based company would eliminate approximately 15,000 jobs as part of efforts to reduce costs by USD 10 billion by 2025.
Intel reported revenues of USD 12.8 billion in the second quarter of the fiscal year 2024, a 1% decline from a year ago, and posted a net loss of USD 1.6 billion.
Regarding the recent official visit to the U.S., Chow mentioned that Penang received confirmation from existing investors that they have plans to continue expanding their operations.
“Most of the companies we visited are existing investors who are considering expansion plans,” he said.
He added that the mission he led, along with the InvestPenang delegation, focused on renewing and strengthening relationships with U.S. investors in Penang.
The mission, which took place from August 4 to 14, involved 22 official strategic meetings and site visits to promote the expansion of operations in Penang and attract new investments.
The delegation visited MKS Instruments, Brooks Instrument, Lattice Semiconductor, AMD, Synopsys, Efinix, Agilent, Coherent, SambaNova, Western Digital, Centific, Monolithic Power Systems (MPS), Dexcom, Cohu, UST, TTM Technologies, Mattel, as well as potential investors.
