Intel is investing $7 billion to improve its semiconductor packaging

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With the ongoing supply chain and semiconductor crisis, Intel is making a slew of strategic decisions to prevent something like this from happening again in the future and to get back on track. The company is not only making new investments in the US, but it is also sanctioning many international projects as well. The latest development from Team Blue is that it is planning to spend $7 billion to expand its packaging facilities in Penang, Malaysia.

Back in May this year, Intel had announced that it is going to spend $3.5 billion on its Rio Rancho packaging facility in Albuquerque, New Mexico. Packaging is an essential part of semiconductor manufacturing and design. It not only affects the cost of chip production but also affects the power, performance, and basic functionality of a chip on a micro-level.

Intel is expanding into a new packaging generation called copper hybrid bonding interconnect. This is used when chip dimensions get below 10 microns and helps deliver a 10x improvement in interconnect density.

Intel will be announcing the expansion officially on Wednesday at Kuala Lumpur airport with Intel CEO Pat Gelsinger, Malaysia’s trade minister, and the CEO of the Malaysian Development Authority.