Intel to invest $7 billion in new plant in Malaysia, creating 9,000 jobs

Intel to invest $7 billion in new plant in Malaysia, creating 9,000 jobs

Intel

Intel (NASDAQ:INTC) is trading up 1.95% at 50.67

Intel Corp will invest more than $7 billion to build a new chip-packaging and testing factory in Malaysia, Chief Executive Pat Gelsinger said on Thursday, expanding production in the country following a global shortage of semiconductors.

The new advanced packaging facility in Malaysia is expected to begin production in 2024, he said.

The 30 billion ringgit ($7.10 billion) investment is expected to create over 4,000 Intel (NASDAQ:INTC) jobs and more than 5,000 construction jobs in the country, the Malaysian government said.

“This undertaking is indeed timely given the bullish global demand driven by the chip shortages and the potential challenges arising from the recovery of the pandemic globally,” Malaysian Minister of International Trade and Industry Mohamed Azmin Ali said in a statement.

A global shortage of semiconductor chips, caused partly by a pandemic-fuelled demand for electronics and disruptions in supply chains has seen car makers cut production and delays in smartphone deliveries at companies including Apple Inc (NASDAQ:AAPL).

Malaysia’s chip assembly industry, accounting for more than a tenth of a global trade worth over $20 billion, has warned that shortages will last at least two years.

Intel’s Gelsinger said he expected the chip shortages to last into 2023.

On technical fronts Intel (NASDAQ:INTC) RSI stood at 57.91 and currently stock is trading above all MA. So, BUY position can be taken with following target and stoploss:

TRADE SIGNAL – : Intel (NASDAQ:INTC) – BUY: 50.67, TARGET: 51.07, STOP LOSS : 50.11

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