Intel is investing $7 billion to improve its semiconductor packaging

Intel Fab 42
Source: Intel

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.

The investment not only helps Intel develop cutting-edge packaging facilities but also helps it insulate itself from the US' international relations and economic policies. US-China trade war has already impacted Intel's bottom-line and Chinese fab expansion projects. Intel's continued interests in international facilities ensure independence and also protect them from eventual actions from US regulatory bodies.

Source: Electronics Weekly

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